I’m pushing my way through some of the fine print in the bailout today– and just found out about a first time buyer credit of $7,500. It started April 9, 2008 and will end June 30, 2009.

It is not a gift, but a no-interest loan. It begins to get phased out at annual incomes of $75,000 for a single person and $150,000 for married couples.  For San Francisco, this will make this benefit feasible only to those buying in a lower price range.

Here is how it works:  if you are a first time buyer within the time frames specifified (owner occupied only), you may apply for the credit on your 2008 or 2009 tax return. If you are granted the credit, then it must be paid back usually over 15 years (at about $500/year to hit to amount owed in following years. If you sell or transfer the property within 15 years, all is due and payable on a pro-rated basis. For more information, check out www.federalhousingtaxcredit.com.

This entry was posted on Wednesday, October 22nd, 2008 at 4:25 pm and is filed under Buying Strategies. You can follow any responses to this entry through the RSS 2.0 feed. You can skip to the end and leave a response. Pinging is currently not allowed.

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