$8000 First Time Homebuyer Tax Credit

The Federal Government has instituted an $8000 First Time Homebuyer Tax Credit. This refundable tax credit will allow for first time homebuyers to receive up to $8000 in tax refund for purchasing a primary residence on or before April 30, 2010 or purchased by June 30, 2010 with a contract date of April 30, 2010. The FHA loans will allow these funds to be "fronted" to buyers so they can use them for down payment and closing costs. However, it must be given from a Non-Profit Organization recognized by FHA. Currently, we do not have any non-profits locally in Tucson who are offering it. However, once closed, you can either file an amendment to your 2008 taxes (even though you are purchasing in 2009) or you can wait and file it on your 2009 taxes. This refundable credit means that it will be used to wipe out any tax liability you have and any leftovers will be refunded to you by the IRS.

For additional information, See Expanded Tax Break Available for 2009 First Time Homebuyers or First Time Homebuyer Tax Credit!