Brief introduction to tax credit

First time home buyers purchasing any kind of home are eligible for the $8,000 tax credit. The purchase of the home must occur between 1st January 2009 to 1st December 2009. The date on which the closing occurs and the buyer gets the home ownership is considered as the purchasing date. Homes that will be used for permanent residence will be eligible. The homes include single family homes, condominiums and also manufactured homes.

There is an income limit for full tax credit to buy a home. Single buyers must have an income of $75,000 or less and married buyers must be $150,000 or less. The buyers don't have to pay back the credit. But, the buyers have to own the home for minimum 3 years, if they sell the home before earlier, they have to return the credit to the government.