If you are planning to buy a home, take note. As part of the Housing and Economic Recovery Act of 2008 that was signed into law on July 30th by President Bush, a provision in the act includes a tax credit for both first time buyers and homebuyers who have not owned a principal residence in the last three years. Both will be eligible for a tax credit equal to 10% of the cost of the home or up to a maximum of $7500. The program is actually an interest free loan which homebuyers must repay over 15 years beginning the second year after closing. This credit applies to homes purchased between April 9, 2008 and July 1, 2009.
