First Time Home Buyer Credit - Qualifying Criteria and Restrictions

If you are looking to buy your first home in the neardecide to sell it), then the credit must be repaid.
future, it is likely that you have heard about the firstExceptions may apply to members of the armed
time home buyer stimulus program which offers you aservices, intelligence community, and the Foreign
tax credit of up to 10% on the purchase price of yourService who are under government orders for
home (up to $8000) if you purchase by April 30th ofextended duty service. Next, you do not qualify for the
next year. You are probably also familiar with thecredit if you bought the home from a close family
basic qualifying criteria like not having purchased amember such as spouse, parent, grandparent, or child.
home as your "primary residence" in the three yearsYou also cannot claim the credit if you are a minor or
prior to your current purchase and being within certainnon resident alien. Residents living in the District of
income limits. There are, however, certain lesserColumbia who have claimed the Washington D.C. first
known restrictions and exceptions surrounding thetime home buyer credit also do not qualify. There is
regulations that could impact your eligibility. Failing to besome good news for you, however, if you are a
aware of these provisions could result in an unpleasantmember of the armed services, Foreign Service, or
experience with you being denied the credit or requiredintelligence community serving overseas. If this
to repay it. Conversely, if you meet certain conditions,describes your current situation, then you have an
the law may make certain exceptions that allow youadditional year to purchase your home. This means
to receive the credit even if you normally wouldn'tthat you have until April 30th, 2011 to enter into a
qualify.binding agreement and until June 30th, 2011 to close on
Firstly, you must keep in mind that this program isyour purchase.
designed to assist genuine first time home buyers whoAlthough the basic qualification criteria surrounding the
are purchasing a home as their primary residence.first time home buyer credit are relatively simple, the
House flipping is not encouraged. The law requires thatdevil does indeed lie in the details. Make sure you avoid
you maintain the home you buy as your primarydisappointments and missed opportunities by doing all
residence for at least three years following youryour research and staying up to date on the latest
purchase. If at any point during that period your homedevelopments.
ceases to be your primary residence (such as if you