First-Time Homebuyer Tax Credit

AAA

DEFINITION of 'First-Time Homebuyer Tax Credit'

A refundable tax credit made available to Americans purchasing their first home. The first-time homebuyer tax credit originally applied to home purchases made by qualified first-time buyers between April 9, 2008, and July 1, 2009. However, the Obama administration extended the original time frame requiring homeowners to have a signed sales contract until May 1, 2010, and gave them until the end of June, 2010, to close the transaction.

INVESTOPEDIA EXPLAINS 'First-Time Homebuyer Tax Credit'

The original tax credit implemented a credit of 10% of the home's purchase price, up to $7,500, which had to be repaid over 15 years in equal installments. However, the expanded version of the tax credit increased the maximum to $8,000 and removed the repayment requirement altogether, as long as the buyer stayed in the home for at least three years.

VIDEO

RELATED TERMS
  1. Emergency Economic Stabilization ...

    One of the bailout measures taken by Congress in 2008 to help ...
  2. Build America Bonds - BABs

    Taxable municipal bonds that feature tax credits and/or federal ...
  3. American Recovery And Reinvestment ...

    An act initiated and signed by U.S. President Barack Obama in ...
  4. Mortgage-Backed Security (MBS)

    A type of asset-backed security that is secured by a mortgage ...
  5. Troubled Asset Relief Program - ...

    A government program created for the establishment and management ...
  6. Commercial Real Estate Loan

    definition of a commercial real estate loan
Related Articles
  1. 10 Steps To Tax Preparation
    Taxes

    10 Steps To Tax Preparation

  2. The Art Of Cutting Your Losses
    Active Trading Fundamentals

    The Art Of Cutting Your Losses

  3. Saver's Tax Credit: A Retirement Savings ...
    Savings

    Saver's Tax Credit: A Retirement Savings ...

  4. 10 Most Overlooked Tax Deductions
    Taxes

    10 Most Overlooked Tax Deductions

comments powered by Disqus
Hot Definitions
  1. Correlation

    In the world of finance, a statistical measure of how two securities move in relation to each other. Correlations are used ...
  2. Letter Of Credit

    A letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. ...
  3. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  4. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  5. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  6. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
Trading Center