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According to a lot of people, there has never been a better time to buy a home. Rates are low, foreclosures are many, and the market is wide open. If you are a first time buyer then you could be eligible to receive a tax credit of up to eight thousand dollars. This means that if you meet the requirements laid down by the government then you cold potentially save a lot of money. One thing to know is that the term, first time buyer, simply means that if you have not owned a principal home for the past three years then you are in a position to take advantage of this credit.
However, there are certain limits and parameters to be aware of. For one, if you do choose to take advantage of the tax credit then you must occupy the home for at least three years or you could face the very real possibility of having the government reclaim the credited funds. Also, the amount of credit given will be ten percent of the home’s purchase price up to a maximum of eight thousand dollars. This means that if the home is say, fifty-thousand dollars, then the amount credited will be five thousand. You may want to compare the difference between renting and buying a home with the Home Buyer Tax Credit Calculator
Another factor to be aware of is that if you make over a certain amount annually, then you may or may not be eligible to receive the credit. For a single person who purchased his/her home on or after January first of 2009 or on or before November sixth of 2009, then their cap cannot exceed seventy-five thousand dollars annually. Not to mention that the purchase price of the home itself may not top eight-hundred-thousand. However, if you are purchasing you’re home after November sixth and on or before April thirtieth of 2010 then the monetary cap is substantially higher than before. For a single person it rises to one hundred and twenty-five thousand.
For married couples wishing to take advantage of the tax credit, the limits for annual income are different. If purchased on or before January first 2009 or on or before November sixth 2009, the cap is one hundred and fifty thousand. If purchased After November and by April thirtieth then the cap is two-hundred and twenty-five thousand. Another thing married people should know is that if one of them is ineligible to receive the credit then both of them are.
The tax credit is refundable as well, so it is possible to receive a check for the credited amount. There are many factors to consider when getting ready to purchase a new home. It is a decision that can have a very positive or very negative effect in the future. When the economy turns around, you could be in a position to make more money than you spent in the first place by taking advantage of the current opportunity. Even those who aren’t first time buyers are being offered credit for up to six thousand five hundred dollars should they wish to upgrade. Ultimately, the decision to make the purchase is up to you. Just be sure to talk with a tax professional before making any final choices. | 
