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2008 Federal First-Time Homebuyer Tax Credit Program
Internal Revenue Service
www.irs.gov

Program Overview

2008 Federal First-Time Homebuyer Tax Credit Program is a loan (interest-free) of up to $7,500 that must be re-paid over a 15-year period. The credit is available for homes purchased on or after April 9, 2008 and before July 1, 2009. The tax credit is claimed on federal income tax returns. Available nationwide.

Who is eligible for this program?

The law defines "first-time homebuyer" as a buyer who has not owned a principal residence during the three-year period prior to the purchase. For married taxpayers, the law tests the homeownership history of both the homebuyer and his/her spouse. Ownership of a vacation home or rental property not used as a principal residence does not disqualify a buyer as a first-time homebuyer. Nonresident aliens may qualify. Qualified homebuyers must file a federal income tax return to claim the tax credit. To qualify for the full tax credit of $7,500, the Modified Adjusted Gross Income (MAGI) must be $75,000 or less for single individuals, or $150,000 or less for married couples. If MAGI is above these limits, partial credits are available. Consult a tax advisor to determine your eligibility. Household Income Limit: $ 75,000/single; $150,000/married Is this program for first time buyers only? Yes

Property Eligibility Requirements

This program is open to all U.S. residents. Eligible residents of the District of Columbia may claim either the DC first-time home buyer credit or this credit, but not both. Allowable property types: Single-family detached homes, attached homes like townhouses and condominiums, manufactured/mobile homes and houseboats. For new construction, the purchase date is the date the owner first occupies the house.

Benefit Details

Qualified homebuyers claim the tax credit on their federal income tax return. For more information, visit www.federalhousingtaxcredit.com. The tax credit is capped at $7,500, but is equal to 10% of the home purchase price for homes under $75,000. Benefit: This is a zero-interest loan with a 15-year repayment period. Loan Term: 15 years Owner Occupancy Required: Yes Other Program Comments: The tax credit cannot be combined with the mortgage revenue bond (MRB) homebuyer program.

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