As part of the American Recovery and Reinvestment Act of 2009, the first time homebuyer tax credit has been enhanced. The 2008 plan offered a first time homebuyer up to $7,500 tax credit which actually had to be repaid, interest free, in $500 installments over the next 15 years or when sold. The plan was set to expire on 6/30/2009. The new 2009 act allows a tax credit of up to $8,000 (10% of the purchase price up to maximum $8,000) to a first time homebuyer which does not have to be repaid as long as the buyer stays in the house a minimum of 3 years. A first time homebuyer is considered to be a buyer who has not owned a home in the last 3 years. The household income eligibility for the credit is $75,000 annually adjusted gross income for a single person, $150,000 for joint-filing couples. Above those limits, the credit is phased out gradually. It has to be a principal residence. The program will end on December 1, 2009 so if you, or anyone you know can benefit from this program, give us a call!