The American Recovery and Reinvestment Act of 2009 includes a new and improved first time home buyer tax credit available for eligible buyers who purchase between January 1st and December 1st, 2009.  Here are some of the key points:

• To qaulify for the credit you must be a first time home buyer.  A first time home buyer is defined as anyone who has not owned a home within the past three years.
• Single taxpayers with adjusted gross incomes up to $75,000 and married couples with adjusted gross incomes up to $150,000 qualify for the full tax credit.  Those whose incomes exceed the limit may still be eligible for a partial credit.
• The tax credit is equal to 10% of the purchase price of the home, but is capped at $8000.  In other words, to claim the full credit the home must cost at least $80,000.
• The tax credit is "non-refundable" and does not have to be repaid provided the buyer uses the home as a primary residence for at least 3 years.
• For more detailed information visit the Federal Tax Credit Website. 

This $8000 tax credit may help the first time home buyer in a number of ways:

• Pay off a car loan to decrease your monthly mortgage payments.
• Use it to offset the cost of daycare following the birth a new baby.
• Make improvements to your new home.
• Put the money in savings to use for emergencies.
• Repay a relative who "gifted" you money for a down payment.

Take advantage of this program!  Call a knowledgeable lender like:

Emily Zachariasen, Home Loan Consultant
Countrywide Home Loans
Office:  406-721-0616 ext. 221