For aspiring home owners who find their goal stubbornly elusive, newly enacted legislation providing a tax credit of as much as $7,500 for first-time home buyers might just be the opportunity of a lifetime.
But like so many of the good things in life, time is of the essence for buyers who want to take advantage of this outstanding opportunity. Only homes purchased on or after April 9, 2008 and before July 1, 2009 are eligible. Use the links below to learn more about the tax credit.
If this offer sounds too good to be true, it's because it is. Reading the website you might not realize what the catch is. Although the government is giving $7500 to qualified new home-owners (income of < $75,000 and have not owned a home in the past 3 years for single individuals) you are required to pay that money back over 15 years or whenever you sell the house. You make no payments for the first 2 years and if you sell the house at a loss, the debt is forgiven.
On the whole, I would not recommend this unless it's absolutely necessary. I don't think it's a good reason to buy a house you wouldn't otherwise buy or be able to afford, and I'm always against taking on unnecessary debt. However, if you think you are disciplined enough to invest it instead of blowing it on something and you can afford your new home with or without the tax credit, then go ahead.
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