This year, Congress has enacted an $8000 credit to help first-time home buyers. To qualify, you can earn no more than $75,000 as an individual or $150,000 as a married couple filing a joint tax return.  If you do qualify, you will be able to deduct the full $8,000 from your federal tax liability. Or, if you owe less than $8,000, the government will subtract the amount you owe from $8,000 and send you a check for the difference!

• 7 months left - 2009 Stimulus Package Tax Credit, which does not have to be paid back, expires on Dec 1, 2009.
• Credit can be claimed on 2008 returns.
• Money can be received within weeks of closing.
• You do not have to wait until you file the 2009 returns.

Only first-time home buyers who purchase their principal residence on or after January 1, 2009 and before December 1, 2009 are eligible. You will also be considered a first-time buyer if you have not had any ownership interest in such a home "in the three years previous to the day of your 2009 purchase."

• Build equity. Over time, homes have always gained in value, so you can expect to get your investment back and typically much more when you sell.
• Tax deductions. Save on taxes based on the interest and real estate taxes you pay instead of letting a landlord get the benefit.
• Lower payments. It depends on your rent, of course, but if you can afford just 5% down, your monthly payments may actually be less than your rent!
• Stability. Some landlords raise rents every year, so you can choose a fixed-rate mortgage where the payments stay the same.
• Receive credit. Money you put down and pay into a mortgage to build equity can be made available to you in the form of a loan or a line of credit.