Qualifying for the First Time Home Buyer Tax Credit

• 1). To qualify for the First-Time Home Buyer Tax Credit there are income limitations. The current income limits are $125,000 for an individual and $225,000 for a married couple.
  
  
• 2). The First-Time Home Buyer Tax Credit is 10% of the value of the home, up to $8,000, and is meant only for a primary residence. The maximum credit that a first time home buyer can receive is $8,000.
  
  
• 3). The First-Time Home Buyer Tax Credit time frame was recently extended from its deadline of November 30, 2009. A home buyer now has until April 30, 2010, to have a home under contract. The home purchase must be closed by June 30, 2010.
  
  
• 4). The tax credit is claimed through the IRS, Form 5405. The home must be closed to claim the credit; it cannot be claimed for a home that will be purchased in the future.
  
  
• 5). The tax credit can be used as a credit at closing if the home is being purchased with an FHA loan.