Actually this is known as, the Economic and Housing Recovery Act of 2008.

The provisions of this act are superseded by the $8,000 first time buyer tax credit.

For first time home buyers, the federal government is allowing a $ 7500 interest free loan, to be paid back over 15 years. There are a couple of minor issues with this.

First - First time home buyers are buyers that have not owned a home for the last three years.

Second - The $ 7500, is your money, buyers must come up with the $ 7500 to start with. So, the first year, you save $ 7500 in taxes, and for the rest of the payback period, your taxes increase by $500 per year, to pay back the loan.

It is a free loan, and there is no reason not to take advantage of it, but unfortunately it is not money up front.

For more information, check out these links.

Summary Fact Sheet

Questions and Answers

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