First Time Homebuyers Tax Credit

Over the summer a First Time Homebuyers Tax Credit was written into the Housing and Economic Recovery Act of 2008, but I don't think enough attention was paid to it. Now, with mortgage rates low and potentially going down another point, there has never been a better time to buy a first home. Here are the details:

What is it?
$7,500 tax credit for first time home buyers that works like an interest-free loan and must be repaid over a 15-year period

How does it work?
If you buy a primary home between 4/9/08 and 6/30/09, you may be eligible for a tax credit up to $7,500. If you were going to originally receive a $1,000 refund when you file your taxes in 2009, it will now be increased up to $8,500 as a qualified first time homebuyer. Starting the second tax year after your purchase, you have up to 15 years to repay the loan.

Who is eligible?
1. You must close between 4/9/08 and 6/30/09.
2. You must be a first time homebuyer or not have owned a home in the last three years.
3. You must be buying a primary residence; no investment of second homes allowed.
4. Your modified adjusted gross income must be below $150,000 or $75,000 for buyers that file taxes single.