$8000 TAX CREDIT

If you are reading this for the first time you may be spending too much time at the movies -- Big News for some -- there is a $8,000 credit to some buyer's in 2009.

I say some people because it is for people who have not owned a home with in the last three years. There are a bunch of other rules on it too which is fine we have to have rules. ($75,000 income limit per head, owner occupied 3 years).

A tax credit is more valuable than a tax deduction because A credit reduces dollar for dollar the amount of tax you owe, where as a deduction allows the tax payer to exclude some taxable dollars.

The tax credit is better than last years because it doesn't have to be paid back. It is a true tax credit, but here is the deal.

To buy a home buyers still need to have a job, a good credit rating, and some money for a down payment. If you have all of those things then you will be rewarded by being able to purchase a home and will get the tax credit on top of that" party dance time".

My take on it is that if you are in a position to buy a home and were planning on doing so the tax credit is a good thing. If you cannot afford to buy a home because your income is not high enough, your credit rating is not good enough or you don't have any money then the tax credit isn't going to have any impact on your situation what so ever.

There are some other programs for first time home buyers that may help: Oregon Bond, FHA.

I am offering a first time buyer class on March 25Th from 6-8pm. I offer one every other month and it is free. There will be a lender, escrow agent and myself at the class to answer your questions. 8 people per class -- contact me today to reserve a spot.