February 25, 2009 – (RealEstateRama) — Recently President Obama signed into law the American Recovery and Reinvestment Act of 2009 which:
– Provides a tax credit equal to 10 percent of the sales price of the home, up to a maximum credit of $8,000.
– There is no repayment provision for this tax credit unless the home buyer sells the home within the first three years of purchase. This was to protect against real estate speculators.
– The tax credit can be used on a first time home buyer’s principle residence. A first time home buyer is someone who has not owned a home for three years or more.
– Applies to homes purchased between January 1, 2009 and December 1, 2009