How to Get A $8,000 Tax Credit When You Purchase Your First Home in 2009

Member

By BellaCasa
User-Submitted Article

Article Rating:

(9 Ratings)

$8,000 Tax Credit for First Time Home Buyers

President Obama signed the American Recovery and Reinvestment Act of 2009 into law on February 17, 2009.

One of the parts of the bill calls for a tax credit of up to $8,000 for First Time Home Buyers, who purchase their first home between January 1, 2009 and December 31, 2009. The actual tax credit is for 10% of the home's value or $8,000, whichever is less.

This is a wonderful incentive for people who were contemplating whether or not to purchase a home in today's housing market, to get off of the fence and make that purchase. It is estimated that 300,000 people will take advantage of this tax credit, which will in turn, help 300,000 home sellers get their homes off of the market and buy another home, which helps 300,000 more sellers and so on. This will definitely help to boost a slumping housing market.

So, how can you take advantage of this generous tax credit? Read on for more information.

Difficulty: Moderately Challenging

Instructions

Things You'll Need:

Down Payment
Job
Good credit
Desire to become a homeowner

Step 1

Set A Realistic Goal

Sit down and make a budget. Set a realistic price for a home that you can afford to buy. Start looking online for homes for sale to get an idea of what you can afford in your price range.
Step 2

Get Pre-approved For A Mortgage

Go to a bank and get pre-approved for a mortgage. This will help speed up the process of buying a home and most sellers will want to know that you are pre-approved for a mortgage before they sit down to negotiate with you.
Step 3

Find A Good Realtor

Find a seasoned, reputable Realtor in your area. Ask friends, family and coworkers for referrals. Start looking at homes.
Step 4

House Painting Party

Purchase and close on your FIRST home. How exciting! Have a House Painting Party and invite all of your friends over to help you paint your new walls!
Step 5

Receive Your First Time Home Buyers Tax Credit

File your 2009 taxes in 2010. Apply for yout $8,000 tax credit. Receive $8,000 tax credit and do a happy dance in your new home! Congratulations!!!

Tips & Warnings

The State of Missouri has a loan program that will loan you the money for your down payment on your first home, which you then pay back with your tax credit. Look for more states to follow suit.

Resources

Comments

JParsh said

Flag This Comment

on 9/21/2009 This article is filled with misinformation. Using your tax credit towards your down payment is a federal guideline not state specific and it depends on your bank whether or not you can take advantage of this. And you don't have to wait to file your taxes in 2010 to collect your money. Very misleading article name since most of the "how to" article has little to do with the 8K incentive.