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First Time Home Buyers Receive Tax Credit
Levi Gross
BOB DAVIS
STORY TOOLS 
More from YourNews BusinessFirst-time buyers and people who have not owned a home in the past three years will get a $7,500 tax credit if they purchased a home on or after April 9, 2008 or if they purchase one before July 1, 2009.
Income limitations are:
- Married couples with incomes less than $150,000 qualify for the entire tax credit. The tax credit phases out for married couples with incomes between $150,000 and $170,000. Couples with incomes exceeding $170,000 do not qualify for the tax credit.
- Singles with an income less than $75,000 qualify for the entire tax credit. The tax credit phases out for singles with incomes between $75,000 and $95,000. Singles with incomes exceeding $95,000 do not qualify for the tax credit.
The tax credit is really an interest-free loan from the government that must be paid back over fifteen years, in increments of $500 a year.
- If you die, your heirs do not have to pay back the remaining balance.
- If you sell your home before fifteen years have passed and your homes appreciation is less than the amount you have to pay back, the loan is forgiven.
If you turn your home into a rental or investment property, you must pay back the balance due.
Bob Davis is the Branch Manager and Certified Mortgage Advisor with Bob Davis Team/ First Mortgage Corporation in Ventura, California. He may be contacted at (805) 658-7435 or bdavis@firstmortgage.com FMC is licensed by the Department of Corporations under the California Residential Mortgage Lending Act.
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