Tax Credit for New Home Buyers!

As part of the Housing and Economic Recovery Act of 2008 (H.R. 3221), the federal government is offering tax credits of up to $7,500 to new buyers between April 9, 2008 and June 30, 2009.

That's right. If you have not owned a house within the last three years and close escrow on a house before June 30th of next year--and that's any house--the IRS will cut either this or next year's tax bill by up to $7,500! The credit is intended to "jump-start housing sales and clear out unsold real estate inventories," according to Kenneth Harney at the Washington Post.

Keep in mind, however, that this particular tax credit does require that beneficiaries pay back the credit "starting in the second tax year after purchase and continuing for up to 15 years." In this way it is, in essence, an interest free loan.

For more details on the stipulations of this new credit and to find out if you are eligible, click here.

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