Ashton On The News - First Time Home Buyer
Many people cannot fathom buying a home in today's economy.
But, some in the home buying business say now is the perfect time to do so... and it's all thanks to a tax credit the federal government is offering to those who have not owned a principal home in the past three years.
Wayne Pharries / V.P. Mortgage Lending, First National Bank
"This is called a refundable tax credit .... in that... whether you owe taxes or not... you're going to get this money. So, if you didn't owe any taxes at all, you would get the full amount that you qualify for... up to $8,000."
This tax credit differs from a $7,5000 tax credit offered last year, which actually had to be repaid to the government over a 15 year period.
Mechell Dixon / mechell@kfdx.com:
"There is at least one exception to the no pay back rule. If you sell your house within threes of buying it and taking advantage of that tax credit... then.. the government will expect you to repay them $8,000."
But, one local realtor says... remaining in a house for three years is well worth the free money you could receive.
And, he can't wait for word to spread about the new tax law.
Ashton Gustafson / The Bishop Realtor Group:
"Haven't seen it yet catch on. I think it will. I think once people realize, essentially, what this tax credit is, they'll understand at that time it's a great opportunity."
There is an income limit on the tax rule.
But, provided you qualify and you have the money for a down payment... you can take advantage of this deal that the government believes is one of the first steps to strengthening the economy.
