Many people looking for their first home (or their first home in many years) have heard about the Homebuyer Tax Credit program. This program is scheduled to expire on April 30, 2010. If you've been thinking about buying a home, now is the time to take advantage of this program before time runs out.

The tax credit has already helped many individuals and families who were unsure about purchasing a new home or unwilling because of the cost, move into a new house. Current home prices are on a national level are down nearly 27 percent from their 2006 peak.

For most of today's buyers it means being able to purchase a home at a significant discount. In addition, 30-year fixed mortgage rates are hovering at roughly 5 percent translating to payments that are at or below the cost of renting an apartment or condo.

Who Qualifies?

• Any first time home buyer who purchases a home before April 30, 2010 &
• Any home buyer who has not purchased a home during the previous 3 years of thier last purchase. For couples this means both parties must meet this qualification.
• If you currently own a home and are looking for a new home under this program, you must have lived in your current home (which is vacant or for sale) as your primary residence for 5 consecutive years within the last period of 8 years. Be prepared to provide proof of residency when you file for the credit.

How much is the credit?

• For new home buyers the maximum credit is $8000
• For current home owners the maximum credit is $6500

The tax credit is determined by:

1. The price of the home - you'll be eligible for up to 10% of the home cost (must be under $800,00)
2. The buyer's income (must be under $125,000 per person)

You may take advantage of this program even after April 30 provided you have a written, binding contract on or before April 30, 2010. You'll have until July to close on your home.

You won't have to pay back the tax credit as long as you live in the home at least three years. And this credit also applies to new home construction as well!

If you are thinking of buying a home, now is the time to really cash in on home savings, interest rates and tax credits. There's never been a better time to buy.

For more information on the Federal Housing Tax Credit - visit this website http://www.federalhousingtaxcredit.com/

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