Should First-Time Home Buyers buy now or wait?

It might be a good idea to purchase a new home now for First-Time Home buyers because of the Tax Credit.  The Tax Credit is part of the Housing and Economic Recovery Act of 2008, signed into law on July 30, 2008.

House Signing

Te intent of the tax credit is two fold:

·      To provide a financial resource for home buyers in the year that they   purchase a home

·      To provide a stimulus to the housing market and the economy, helping to stabilize home prices and increase home sales


The law provides a tax credit equal to ten percent of the qualified home purchase price.  The credit is capped at $7,500.

The credit is essentially an interest-free loan.  Homebuyers are required to repay the credit to the government, without interest, over 15 years in equal installments or when they sell the house.

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