Go Get Your $7,500 15-Year Interest Free Loan From The Government

Go get your $7,500 15-year interest free loan from the government 

Tax credit offered to new homebuyers  

Expires June 30, 2009! 

 

1. Who is eligible? 
   • First-time homebuyers or any homebuyers who have not owned a principal residence in the last three years 
2. How does it work? 
   • Eligible purchasers can claim the $7,500 credit on their annual tax return form.  

· Amount of credit: 10% of cost of home or a maximum of $7,500 

3. Repayment: 
   • Two years after the credit is claimed, the homebuyer will have to start paying it back. 
   • 15 equal annual installments will have to be paid back to the IRS every year.  

· 6.67% of the borrowed amount or a maximum of $502 

3.  
   • If home is sold before 15 years, the remainder of the loan will have to be repaid to the IRS upon the sale. 

· Part of the liability can be forgiven if the gain on the sale is less than the amount of the loan. 

4. Restrictions: 
   • Home purchase time limit: 

· Homes purchased on or after April 9, 2008 and before July 1, 2009  

4.  
   • Home must be a single family residence (including condos, coops) that will be used as a principal residence. 
   • Home must be located in the United States. 
   • Home cannot be financed through mortgage revenue bonds. 
   • Income restriction: 

· To qualify for full $7,500 credit, the taxpayer must make no more than 

a.       $75,000 for single returns 

b.      $150,000 for joint returns 

· To still qualify for credit but at a lesser amount, the following income caps apply 

a.       $95,000 for single returns 

b.      $170,000 for joint returns 

 

For more information on the tax credit: click here

 

Click Here for FAQ

 

 

 

Tagged as: $7500 Tax Credit, 1st time Home Buyers