If you were a first-time home buyer between April 8, 2008 and January 1, 2009, you might recall taking advantage of The Housing and Economic Recovery Act of 2008 that allowed eligible homeowners to utilize an interest-free loan equal to 10% of the purchase price of a home (up to $7,500).

How much was the first-time homebuyer credit in 2008?

The History of the First-Time Homebuyer Credit The credit was worth up to $7,500 for homes purchased in 2008, or $3,750 for married individuals who filed separate returns.

Do I have to repay my first-time homebuyer credit?

With this credit, you have to repay the money over a period of 15 years, beginning with your 2010 return. The credit for 2009 and 2010 was not intended to be repaid. If you claimed a First-Time Homebuyer Credit in these years and that house remains your main home for 36 months, you do not have to repay the credit.

How much do I have to pay back on the homebuyer credit?

The homebuyer credit is repaid as an additional tax on your federal tax return if you bought your home and qualified in 2008. This works out to annual repayments of $500 per year if you received the maximum $7,500 credit.

Who was eligible for the homebuyer credit in 2008?

Those serving in the U.S. military, the intelligence community, or Foreign Service on official extended duty outside the U.S. had an additional year to qualify for the homebuyer credit. The homebuyer credit is repaid as an additional tax on your federal tax return if you bought your home and qualified in 2008.

When was the new homeowners tax credit passed?

The short answer is unfortunately, no. The new homeowners tax credit that many filers are familiar with is the “First-Time Homebuyer Credit,” which was passed in 2008 under HERA or the Housing Economic and Recovery Act under Obama.

Can a buyer credit be paid off before the House is sold?

I wasn’t a fan of any of the buyer credits, but I particularly didn’t like the $7,500 one because of its loan feature. If the buyer sells the house before the $7,500 credit is paid off, the entire amount becomes immediately due.