First Time Home Buyer Credit

Simply unbelievable! The first time home buyer credit could be yours even if you have previously owned a home. But don't wait. It won't last forever.

**Super Kate Tip: Shouldn't you know your credit score?
Free Credit Score - See yours at CreditReport.com!**

In fact, for a limited time, 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.

There's also a $6500 credit for repeat home buyers.

Just recently one of my Readers asked me for clarification on the repeat and 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.

First Time Home Buyer Credit Highlights

Four highlights to the first time home buyer credit.

1. Limited to 10 percent of the sales price up to $8000
2. Applies to homes purchased during a specific period of time
3. Allows single taxpayers to earn as much as $125,000
4. Provides for married couple income limits of $225,000

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.

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.

Take a look at the HomePath financing, a FNMA alternative to the first time home buyer credit.

FHA For 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.

More on FHA Loan Requirements right here on my website.

More On The First Time Home Buyer Credit

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. The first time home buyer credit can and will change.

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.

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

First Time Home Buyer Advice

Now that you know more about the first time home buyer credit, tap into this First Time Home Buyer Advice, Yogi Berra style.

You Can Ask Kate Too

Ask Kate

What if you could ask a mortgage insider about buying a house and getting your best mortgage rate? Now you can!

Ask Kate™ is specifically designed to answer your questions and create dialog regarding real estate and mortgage financing.

You'll also find a wealth of information at Kate's Best Mortgage Rate Blog packed with the latest additions to this website, interest rate updates and a fresh approach to real estate and mortgages.

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**Super Kate is wondering if you know YOUR credit score?**

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