The IRS has updated the tax form used to claim the first time homebuyer tax credit.  That’s been increased to as much as $8000 for buyers purchasing a home before December 1st.

In 2008 nearly half of homebuyers were buying for the first time and the expanded credit will make it easier for that group of buyers to enter the housing market this year, the Treasury Department said in a recent announcement about its implementation.

IRS Form 5405 will allow qualifying buyers to claim the credit on either their 2008 or 2009 tax returns.  The credit is equal to 10% purchase price of the home, up to a cap of $7,500 or $8,000.

For the first time homebuyers who purchase a home in 2008, the credit maxes out at $7,500 and functions like an interest free loan it must generally be repaid over 15 year period.

The American Recovery and Reinvestment Act of 2009 raised the cap to $8,000 and eliminated the repayment requirement unless a home is resold within three years.

With the first time homebuyer tax credit, a first time buyer can put their mortgage on the fast track with no out of pocket expense.  By using the power of the Money Merge Account program, which pays off a mortgage using an interest-reducing strategy.  First time homebuyers have access to an incredible tool, that can pay off their mortgage in as little as 1/3 to 1/2 the time.  Thus saving themselves time and interest, and owning their home free and clear.

To find how quickly you can pay off your mortgage, becoming debt free thanks to the first time homebuyer tax credit schedule a free financial analysis today.

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