With Obama expected to sign the $787 billion stimulus plan into law tomorrow the country will hopefully be put on the path towards economic recovery. As a homebuyer the biggest difference has to do with the first-time homebuyer tax credit.

Existing First-Time Homebuyer Tax Credit

The existing first-time homebuyer tax credit (Part of The Housing and Economic Recovery Act of 2008) authorizes a $7,500 tax credit for qualified first-time home buyers purchasing homes on or after April 9, 2008 and before July 1, 2009.

In general, the tax credit is equal to 10% of the qualified home purchase price, but the credit amount is capped or limited at $7,500. For most first-time home buyers, this means the credit will equal $7,500. For home buyers purchasing a home priced less than $75,000, the credit will equal 10% of the purchase price.

But this credit isn’t really a credit, it’s a 0% loan that must be repaid over 15 years.

New First-Time Homebuyer Tax Credit under Obama’s Stimulus Plan

The tax credit under the stimulus plan would give buyers 10 percent of the price of a primary residence bought within one year, up to $15,000 $8,000, and is intended to stabilize plummeting home prices. The major difference is that this credit would NOT be a loan that would have to be paid back. It is a no-strings attached tax credit. However, home-buyers would have to repay the credit if they sold their homes within three years.

And here are your Tucson MLS 24-Hour Change Statistics

New Listings	30
Back on Market	6
Price Increases	7
Price Reductions	55
Contingents	10
Pendings	9
Solds	11
Expireds	58
Inactives	14

Tagged as: first time homebuyer tax credit, obama stimulus plan, tax credit, tucson mls, Tucson MLS Statistics