The $8,000 First Time Buyer Tax Credit got better. Now you can take the credit from your 2008 taxes instead of waiting to file your 2009 tax return in 2010.
The $8,000 tax credit from the federal government is a great incentive to buy a home these days. It has had a very positive effect on the home sales market as more buyers are looking to take advantage of this free help from Uncle Sam.
To reiterate, the credit is a gift from HUD to help first time home buyers with the down payment and closing costs for FHA insured homes. To qualify, the buyer must not have owned a home in the last three years and must buy and close on the home by December 31, 2009. To access their money now instead of waiting for 2010 he/she would need to file an amended 2008 return. While this is better than waiting for next year it will stil take time to file and receive the money from the IRS.
HUD went one step further and allowed FHA lenders to provide the buyer with a bridge loan in the amount of the credit until a return can be filed and collected on.
This incentive from our government is one that should be taken as soon as possible. We have helped many young families and single first time home buyers take advantage of this credit but there is no guarantee it will be around forever.
Already we are hearing a rumor HUD is considering rescinding the credit.