First time homebuyers get a tax break.

With the future of the economy up in the air and uncertainty running rampant, the one word I am hearing the most is when. When will things turn around, when will home prices start to rebound, when is the right time to buy. For all these questions I have answer...I don't know. I have heard that by the forth quarter of 2009 things will rebound and we will start to see things turn around, I have also heard that things will get worse before they get better and we will not start to see an upswing until late 2010. What I do know is that qualified buyers and investors will be able to reap the benefits of this stressed market.
The first time homebuyer is recieving an extra incentive from president Obama's stimulus package recently signed into law. They will receive a $8,000 tax credit or 10% of the home value, whichever is less. This is a big improvement on the $7,500 tax credit of 2008 which was more like a low interest loan.
In order to qualify for the credit the home purchase must be made between January 1st and December 1st 2009. You may not have owned a home for the past three years to qualify as a first time buyer, and you must live in the home you purchase for three years or you will be obligated to pay the credit back.
Income restrictions also come into play when trying to qualify for the full tax credit. You must make less then $75,000 for a singles or $150,000 for couples. Higher income buyers may receive a partial credit.
Some buyers even look at this as a discount off the purchase price of the home. A $600,000 purchase becomes a $592,000 purchase. This credit can also be used as a nest egg for the buyers. They would be able to use this for home maintenance, repairs, or even use it to purchase new stuff for their home thus helping to stimulate the economy.