A tax credit of up to $8,000 is available for qualified first-time home buyers purchasing a principal residence on or after January 1, 2009 and before December 1, 2009.

First time homebuyer tax credit: Singles with income of up to $75,000 and couples earning up to $150,000 who buy their first home (or who haven't owned a home in the last three years) can claim a tax credit of up to $8,000, or $4,000 for singles, which does not have to be paid back.

The home must be bought between January 1 and December 1 (not December 31) of 2009. This is an "above the line" tax credit, which means you don't have to itemize taxes to get it. Learn how you can take advantage of the tax credit to buy the home of of your dreams.

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·         Click here for upcoming seminar explaining the $8,000 credit

Confusion over First Time Homebuyer Tax Credit Potential Program

HUD is working on allowing homebuyers to use the First Time Homebuyer Tax Credit of up to $8000 as a soft second mortgage/down payment; although the exact details of the plan are still being refined, this yet another positive step for first time homebuyers.

Shaun Donovan, secretary of the U.S. Department of Housing and Urban Development stated that the Federal Housing Administration (FHA) is now going to permit it's lenders to allow home buyers to use the $8000 tax credit as a down payment. Previously, buyers had to wait to file their taxes to take advantage of the tax credit, which hindered some home buyers from buying.

By allowing buyers to utilize the tax credit as a down payment, money will now be freed up for the buyer that would otherwise be needed at closing, and will allow the first-time home buyer to save their money for a rainy day or for home improvements.