Quote:
Originally Posted by therotman
The tax "credit" has to be paid back to the government in yearly payments after two years. It is not free money and really only helps people buying $100k or less homes. The loan is interest free so if you buy a super low priced house it's a nice help, but in most regions where the houses are more than double that a $7500 interest free loan doesn't do anything.
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My understanding of the details is slightly different. I believe the rules differ from 2008 to 2009. Limit is $8000 for 2009 (or 10% of purchase price, whichever is less). The tax credit must be repaid for homes purchased in 2008. I'm not certain that the credit must be repaid for homes purchased in 2009--different sources I've seen have said different things.