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The modified version of the first time homebuyer tax credit has been revealed and hopefully put into language that the average consumer can comprehend. There are some key elements to the plan that should make it easier for people to take advantage of the discounted home values in the market place and receive a greater check back from the IRS.

Highlights of the plan are as follows:

Amount of credit: For purchases made between January 1, 2009 and November 30, 2009 homebuyers are eligible for an $8,000 credit

Eligible Property: Any single-family residence, (including condos, co-ops, town houses) which will be used as a principal residence.

Refundable: With either version, the money will be made refundable for the year of purchase against the tax return, with any unused amount being refunded to the purchaser in the same tax year.

Income Limits: There are credit limits to the buyer of $75,000 for single ($150,000 for couples on joint return). There is a phase out of full value for caps of $95,000 for single earners to $170,000 for joint.

First time home buyer: Credit still applies to a first time home buyer, and spouse provided they have not owned within the previous three years.

Revenue Bond Financing: With the old (Pre Jan 1, 2009) plan there is no credit for a CHFA financed loan. With the new plan, a CHFA buyer is now eligible for the credit.

Repayment: The old version requires that the credit be repaid over 15 years, with any difference being prorated for sales that take place before the 15-year term expires. The new version requires no repayment of the loan, unless the property is resold within 3 years, and then the entire amount will be recaptured. (In other words, no flip homes will be eligible).

Termination: With the old version the program will terminate on July 1, 2009. The new program will terminate on December 1, 2009 and will apply to purchases made by November 30, 2009.

Effective date: All revisions are effective as of January 1, 2009.

For those of you who have questions are would like to read the highlights of the new bill on your own, I will provide the link to the reader friendly site: http://www.federalhousingtaxcredit.com/

I welcome any calls or emails from anyone else interested in learning more about the act, or who want to work with this Realtor who stays abreast of the information that will make your home purchase more worthwhile.