First-Time Home Buyer Tax Credits - American Recovery and Reinvestment Act of 2009

The stimulus bill passed by Congress and signed by President Obama contains provisions offering tax credits to first time home buyers.  These new tax credits are provided as an incentive to stimulate first time home purchases. The “First Time Homebuyer Tax Credit” was a new tax ruling included in the Housing and Economic Recovery Act of 2008 and was recently modified in the American Recovery and Reinvestment Act of 2009. The new tax law of 2009 does not supersede the previous tax credit of 2008.

Determination of which of the two tax credits that you qualify for, if any, depends upon the date of the new home purchase. Both tax credits are claimed using the same tax form and most of the mechanics of the two First Time Homebuyer tax credits are identical for both 2008 and 2009.

The main difference is that the 2008 version is similar to a 15-year interest-free loan whereas the 2009 version requires no repayment.  Other funadamental differences can be examined further by exploring the tabs on the left.

Click Get Started to get pre-approved and take advantage of the tax credits.