Great news! If you are a potential first-time homebuyer, the stimulus package that was recently passed contains a tax credit up to $8,000 for first-time homebuyers.

Why should you get excited? Well, there was a $7,500 tax credit that was approved in July 2008, but it required repayment, so it was basically an interest-free 15-year loan.

This new tax credit is a true credit that does not have to be paid back (unless you sell the house in 3 years). Plus, it is a credit against your tax liability, meaning you could actually pocket money. Let's say you owe $3,000 in taxes and qualified for the $8,000 tax credit, you could get $5,000 back in the form of a refund!

How does it work? Purchase a home between January 1, 2009 and November 30, 2009 and you are on your way to eligibility. Income restrictions do apply and start at $75,000 for single-filers and $150,000 for joint filers. Please consult a tax advisor regarding your own eligibility and the application of the tax credit.

Who is a first-time homebuyer? It is someone that has not owned a primary residence that they lived in over the past 3 years. Let's say you have been renting for the past 4 years, but did own a home prior to that but sold it. You would qualify as a first-time homebuyer since you have not owned a primary residence in the past 3 years!

Finally - mortgage rates are still historically low and the affordability factor for housing in the markets we serve all add up to a perfect opportunity to consider that step up to owning your first home.