One of the provision of the new housing bill that was just passed is a tax credit for first time home buyers. Here are the basics:
Now here’s the not as good news. . . you must pay the credit back, so it’s basically a zero interest loan. The better news is your payments begin in the 2nd year after you buy the house and you have 15 years to pay back the loan (which comes out to $500 per year).
Please speak to your tax preparer regarding how this tax credit will affect your tax situation.