2009 First Time Home Buyer Credit

Simply unbelievable! The first time home buyer credit could be yours even if you have previously owned a home.

In fact, the US Government is offering motivation in the form of $8000* if you are buying a first home. But don't rule yourself out because you owned a house in the past.**

Just recently one of my Readers asked me for clarification on the first time home buyer credit.

"Kate, I had a misconception about the notion of first time buyer programs. Can you point out first time home buyer tax credit features and define who qualifies."

Purpose Of First Time Home Buyer Credit

Up to $8000* is being offered as a tax credit for buying a first home with the intention of breathing life back into our struggling real estate market and lagging economy.

IRS Defines First Time Home Buyer

The IRS defines first time home buyers as unmarried individuals or married couples with no current ownership in a personal residence for the previous three years. It goes on to state there are one or more exceptions and to consult a tax professional for clarification.

2009 First Time Home Buyer Tax Credit

Five highlights to the first time home buyer credit.

1. Requires no repayment
2. Is limited to 10% of the sales price up to $8000*
3. Applies to homes purchased during 2009
4. Allows single taxpayers to earn as much as $75,000**
5. Provides for married couple income limits of $150,000**

First Time Home Buyer Programs

In addition, from time to time mortgage programs are created to benefit first time home buyers. For these purposes, someone buying a first home is defined by the specific organization responsible for offering the program, for example Fannie Mae or FHA.

FHA And The First Time Home Buyer

FHA defines a first time home buyer as anyone with no ownership in a principal residence during the previous three year period, including any individual who has only owned with a former spouse while married.

An owner of a mobile home not affixed to a permanent foundation is considered to be a first time home buyer. So are owners of property not in compliance with building code, not re-buildable for less than the cost of constructing a permanent structure.

FNMA For The First Time Home Buyer

Fannie Mae determines a first time home buyer as an individual buying a personal residence with no homeownership during the preceding three years.

For married couples, the homeownership history of both the home buyer and spouse is included. However, exceptions are made for displaced homemakers or single parents who had a joint ownership with a previous spouse.

First Time Home Buyer Advice

Confused about the first time home buyer credit? It's okay and it's understandable. But don't let confusion over Fannie Mae or FHA stop you from buying a first home this year AND receiving up to $8000* in a tax credit.

An opportunity of this magnitude may not always be available.

So make the decision today to consult a tax professional and mortgage lender for clarification and assistance regarding the first time home buyer credit.

If you enjoyed First Time Home Buyer Credit, go ahead and take a stroll through the home buying series where you'll discover the magic of buying a home, the charm of real estate appraisers and how to calculate the age of your home inside your toilet tank!

Valuable Resources For Home Buyers - Meet Your Dream Team

How To Buy A House - Part 1 Meet your real estate agent

How To Buy A House - Part 2 Meet your mortgage lender

How To Get A Mortgage - Part 3 Meet your home inspector

How To Get A Mortgage - Part 4 Meet your real estate appraiser

How To Get A Mortgage - Part 5 Meet your title insurance companies

How To Get A Mortgage - Part 6 Meet your homeowners insurance agent

How To Get A Mortgage - Part 7 Meet your escrow and HUD 1 statement

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First Time Home Buyer Advice - You decided to buy a house! What's next?

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*Home buyer credits can change. Consult your mortgage lender for details.

**Don't assume you make too much money to receive the first time home buyer credit. The IRS website states qualifying is calculated using adjusted gross income. Consult a tax professional for details.