Well the Housing and Economic Recovery Act passed, and it offers select homeowners eligibility for a tax credit equal to 10 percent of the purchase price of a home, up to a maximum of $7,500. This credit is $3,750 for married couples filing separately. Unmarried people who jointly purchase a home will be able to divide the $7,500 credit.
Sadly, the credit will need to be paid back to the government over a 15 year period though it’s interest-free. Home buyers would be required to repay the government over 15 years in equal installments of $500 for any amount received. Eligibility caps around $75,000 and $150,000 for joint filers.
Certainly not the incentive that foreclosure buyers were looking for, but this credit may be some help to those looking to buy homes in the next year.