$8,000 Free Cash!!!

That should get your attention.  The government is giving cash to home buyers! Now, there are some stipulations, but if you meet the criteria, you can get $8,000!

This is part of the Economic Stimulus package that was signed into law this week by President Obama. First-time home buyers can claim an $8,000 tax credit on their tax return. A tax credit is different from a tax deduction in that a tax credit is basically money in your pocket. Let’s say that you owed $6,000 in tax liabilities but you had your employer take out $7,000. That means your normal refund would be $1,000. But if you were a first time home buyer, and if you made less than the income restrictions, you would gain an additional $8,000 in refund, making your total refund $9,000.  The article on CNNMoney.com was incorrect in the fact that the got the amount of the refund in this scenario wrong. They seem to have corrected it today.

The basics:

1. First time home buyer (not owning a home in the past 3 years)

2. Purchase a primary residence home between Jan 1, 2009 thru Nov 30, 2009.

3. Income restrictions to $75,000 for singles, $150,000 for married couples. Above these income restrictions, the dollar value is phased out.

With the low interest rates, the depressed housing prices, and now $8,000 of FREE MONEY, it’s a GREAT time to buying a home!