The $7,500 tax credit for first time homebuyers was signed into law as part of the 2008 American Housing Rescue and Foreclosure Act. To qualify for this tax credit, you must close on your new house between April 9, 2008 and July 1, 2009.
Now this sounds like a great incentive to help stimulate home buyers into jumping into the real estate market and helping to dry up some of this excess housing we are floating in. I see this tax credit being plastered all over mortgage broker and home builders marketing materials. There are some very important aspects of this “tax credit” that is not being disclosed to buyers. If you don’t do some homework on your own you may be in for a big surprise when you find out it’s not so much a tax credit as it is an interest free loan that must be PAID BACK!
Now before we get into how this payback is structured, let