For first time home buyers, the government just sweetened the pot.
The message: get out there and buy a house. The Reward: up to $7,500 in tax credits.
This works similar to other tax credits, it’s not free cash but it’s interest free cash for up to 15 years. A qualified first time home buyer need only purchase an owner occupied residence (this can even be new construction). To qualify for the credit. A first time home buyer is one who has not purchased or sold a primary residence in any of the last 3 years. If you are married to someone who has, sorry, unfortunately you don’t qualify.
If you do, your accountant can apply for the credit which caps out at $7,500 on your taxes. This credit is refundable, so even if you owe nothing to the IRS you can get a check back.
The money can be paid back over 15 years with payments as low as $500 / year (presumably paid in your annual taxes). When you sell your house, you can pay back the “credit” with your equity (assuming you have equity to pay it back).
Interested? Let’s talk.