The just passed stimulus bill gives a first-time home buyer a tax credit of $8,000. Homebuyers must have purchase a home after Jan. 1, 2009, and before Dec. 1, 2009, to be eligible for the $8,000 credit.
A Tax Credit applies directly to the taxes you would owe. As an example, if your federal income tax owed for 2009 is $10,000 and you purchase a home this year, you would only owe $2,000!
* First time home buyer is defined as someone that has not owned a home for three (3) years.