Why now is the best time ever to buy your first home...

Unless you've been living under the preverbial rock for the last few months, there are substantial benefits to getting your first home under your feet by the end of 2009. The most important of these is inarguably going to be the Federal Tax Credit, which offers a tax credit of up to $8,000 or 10 percent of the cost of the residence, whichever is lower, to first-time homebuyers who are buying a house for their primary residence.

You've no doubt heard, at least, the gist of this program. It's an effort by Congress to stimulate our economy, and, more specifically, spur those who've never owned their own home into taking the plunge and joining the ranks of the mortgaged. That said, this post will aim to lay clear the guidelines and requirements of this program, Q&A style ...

Question: What if I've already bought a house in my lifetime?

Answer: As defined within the program, as long as you haven't purchased a residence in the three-year period prior to the date of the purchase, you're elligible. If you're married, that applies to both you and your spouse.

Q: Do I have to pay this back?

A: Only if you sell the house within three years will the government "recapture" the tax credit. Death and divorce, obviously, are exceptions to the rule.

Q: Does it matter if it's a new construction house or a resale that's 100 years old?

A: Nope. As long as it's new to you.

Q: Are there income limits?

A: Yes. $75,000 per single taxpayer or $150,000 per couple. But if you make that much and you don't already own a home (i.e. you rent or still live with mom and dad) I also know a guy who can sell you some land on a rapidly melting iceberg.

Q: What if I filed for the $7,500 tax credit last year?

A: Go talk to your CPA or tax preparer to amend your 2008 return.

--Auben Homes