The first-time homebuyer tax credit has been getting a lot of publicity lately. Although it’s pretty easy to qualify, there are still some guidelines which must be followed.

First, and probably the most important, you must be a FIRST-TIME HOMEBUYER. So if you married recently and your spouse owned a home previously, you can’t qualify for the credit. BOTH of you must be first-time homebuyers. How the Federal government defines this is someone who hasn’t owned a home in the previous three years. This must be calculated to the date of the sale of the previous home. For example, if you are buying a home and closing the home purchase on March 31, 2009 but you sold a previous home in April of 2006, you wouldn’t qualify. You’d have to wait till after the three year anniversary of the home sale.

Let’s say that you are a first-time homebuyer but you want to buy the house as an investment and rent it out. Sorry, once again, you don’t qualify. The tax credit goes to those who are buying the home as their own residence.

Once you purchase the home and claim your $8000 tax credit, you must live in the home for a full three years in order to keep the credit. If you sell before the three year anniversary of the purchase, you will have to repay the credit.

The credit is a once in a lifetime opportunity. There has never been a credit like this before and there likely will not be one again, at least in our lifetimes. Take full advantage of it and buy a home before December 1st of this year. Free money. $8000 to spend on the home or on a great vacation. Hurry. It’s too good to pass up.

For more detailed information, come to our FREE NO OBLIGATION FIRST TIME HOMEBUYER class or wait for future blogs. “Simple answers to home ownership questions”.