Tax Tips: First-time home buyer benefits from the government

Tracy Coenen
Updated

By now you may have heard about help for first-time home buyers in the Housing and Economic Recovery Act of 2008. I'm not a big fan of this legislation in general, but I still think it's important for consumers to know what it offers and how they can benefit.

If you're a first-time home buyer, the federal government is essentially offering you a $7,500 loan, interest-free, to be paid back over 15 years. Not a bad deal at all!

To be eligible, you must meet the following requirements:

  • Be buying your first home (rental properties and vacation homes purchased in the past don't count against you, but if your spouse owned a home before, that does count against you)

  • Purchase the home between April 9, 2008 and July 1, 2009

  • Not have income greater than $75,000 (single) or $150,000 (married)

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