BREAKING NEWS: Buy Before December!

In a previous article we told you that the Senate had approved a $15,000 tax credit for first-time homebuyers in hopes of giving America's economy a boost. The only thing keeping the credit from becoming a reality was that it was up to Congress to ultimately approve it... and they didn't.

However, there is good news. The stimulus bill that President Obama signed on Tuesday includes an $8,000 tax credit for first-time homebuyers. It may not sound like much more than the $7,500 break that the government OK'd in July, but that incentive was more of a 'low-interest home loan' than an actual tax credit. Why? Because the homebuyer would have to pay it back. The $8,000 is a true discount on a home purchase, so if you've been thinking about taking the plunge, this is the time!

Between now and December of 2009, first-time buyers are eligible to receive this tax credit on a new home purchase. The only first-time home buyer that it may not help much is one struggling to come up with a down payment, the reason being that the credit is only a benefit once the home purchase is complete. However, in the interest of stimulating home purchasing, which is the entire point of this tax credit in the first place, some states may loan the down payment to the homebuyer and then once the tax credit is credited to them they can simply give it back to the state. Either way, money is saved and a home is purchased.