The new first-time buyer tax credit is 10% of the purchase price of the buyer's new home up to $8,000.  So, if someone buys a $100,000 home, they will qualify for the full credit.

This is a refundable tax credit which means the buyer gets it back in the form of a check.

Buyers using an IHFA loan can borrow against the tax credit for downpayment and/or closing costs.  FHA buyers will also be able to do the same.

To qualify for the credit, a buyer cannot have owned a home in the previous three years, be buying a new principal residence and not earn more than $75,000 if single or $150,000 if married.  For income levels above that, the credit phases out but does not end until a single individual earns $95,000 or, if married, $170,000.

The credit is clamed after buying by filing an amended tax return for 2008 or waiting until next year to file your 2009 tax return.

The credit is only available for home purchases up to November 30, 2009.

To learn more, check out the resources on the right.  To get on the path to your first-time home, contact a local REALTOR® today.

$8,000 First-Time Buyer Tax Credit Resources

Fact Sheet on first-time buyer tax credit

FAQ on first-time buyer tax credit (National Association of REALTORS)

FAQ on the first-time buyer tax credit (National Association of Home Builders)

IRS guidance on ways to get the first-time buyer credit

Idaho Housing Program to make credit available for downpayment

IRS form to claim the tax credit

First-time home buyer tax credit quiz

10 Reasons to Buy a Home Now in SE Idaho

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