FIRST TIME BUYERS TAX CREDIT

AND NEW REPEAT BUYER TAX CREDIT

This will help explain what the new first time home buyers tax credit means:

1. You must be a first time home buyer.

    The plan defines a first time home buyer as a "buyer who has not owned a principal residence during the three-year period prior to the purchase."

2. The house must be under contract by April 30, 2010 and closing must take place bu June 30, 2010.

   3. The buyer's income levels have been increased ...income of less than $125,000 for an individual or $225,000 for a married couple filing a joint return.

    4. The house you purchase must be your "main" home.

For any multiple home owners or potential multiple home owners out there, the new tax credit will not count toward non-primary homes.

"Main" home is defined by the plan as "any home that will be used as principle residence," and includes "single-family detached homes, attached homes like townhouses and condominiums, manufactured homes (also known as mobile homes) and houseboats."

5. The buyer must live in the home for at least three years after the purchase date.

    Home purchasers cannot move, sell or otherwise leave the home they purchase for at  least three years to retain eligibility to receive the tax credit.

6. The cost of the home is $80,000 or more.

    According to the way the plan is written, the home buyer receives 10 percent of the home purchase price -- meaning, to receive the maximum available $8,000 credit, the home must be bought for $80,000 or more. Also, married couples filing separately can receive a maximum of $4,000.

REPEAT BUYER TAX CREDIT

1. Tax credit amount of $6,500

    You must have resided in your current home for a minimum of 5 years.

    The maximum cost of the home is $800,000