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There will probably never be a better time for buyers looking for their ideal home. This is especially true for first time homebuyers. Interest rates are at an all time low, and for some buyers there are still some programs that offer 100% purchases. Plus there is the possibility of getting up to $7,500 in tax credits from the US Government.

Sellers in this market are more willing than ever before to negotiate with a serious buyer. I refer to a serious buyer as one that has gotten themselves pre-qualified; are ready to make a commitment to a purchase; and are well informed.

Interest rates are at record lows, with 30-year conventional mortgages hovering around 5%, and with points can get even lower.

The tax credit was created to give first time homer buyers incentives to enter the market. By getting these consumers into the market, it would potentially set off a chain for sellers to move-up in their houses and provide a jump start to the economy.

The tax credit is not restricted exclusively to first time homebuyers. This status is also given to people who have not owned a principal residence within the past 3 years. The tax credit also knows no age restrictions, so that older homebuyers that have not had their own home for years would qualify for this credit. The credit can be retroactive to purchases made between April 9, 2008 thru July 1, 2009. The tax credit has some conditions relative to single or married taxpayers, which is adjusted for gross income. This should be reviewed with your tax advisor once the purchase is made.

It should be noted that the tax credit is more realistically an interest free loan that does not begin to be repaid until 2 years after the home is purchased. The repayment is done in $500 increments over a 15-year period. Also, if the home is resold before the 15 years has elapsed the remaining balance of the credit may be owed to the government. Again this needs to be reviewed with your tax advisor. If the home is sold for a profit, then the repayment should be straight forward. If the house is sold for a loss, then the outstanding balance would be forgiven.