There were high hopes that the home buyer tax credit would be increased to $15,000 and would apply to all home buyers.  It was not to be.  Congressional Republicans opposed the larger tax credit opting, instead, for a smaller tax credit that doesn’t have to be paid back.

So the final tax credit, as signed into law on February 17th by President Obama will only be $8,000 – up from the $7,500 it used to be. However, it does change the tax credit so that it doesn’t have to be paid back (unless the home is sold within three years) and extends the time period until the end of the year.

So, here is the breakdown:

• tax credit to equal 10% of the sales price of the house or $8,000, whichever is less
• available for primary residences only
• available only to first time home buyers (cannot have owned a home within the most recent three years)
• does not have to be repaid unless the home is sold within the first three years
• there are income limits of $75,000 for individuals and $150,000 for married couples
• expires on December 1, 2009

Even though this is not all it could have been, it still prviodes a little help to the person who is thinking about purchasing a home.  The tax credit combined with extrememly low mortgage interest rates and low, low home prices should be just what the doctor ordered for someone who has been thinking of buying a home.