You may notice that your tax liability will change when you file your first income taxes after a first home purchase. Your deductions do change and your tax liability is based on those deductions.
Owning a home still allows you to deduct certain items. Be sure to have a copy of your closing HUD1 with you when you meet with your accountant or tax preparer. And ask questions so that you understand everything including all the deductions taken and future tax impact.
Regarding the second part of your question about owing $7,500 in down payment assistance, you will need to consult with the paperwork signed at the time you obtained the down payment assistance (DAP). Some DAP programs are grants that do not have to be repaid; others are due upon the sale of your home or kick in after so many years living in the home.
At the very least, the DAP office should have thoroughly covered every aspect of their program to be sure that you understood your obligations under it before you obtained any funds. Read your paperwork carefully. If you are still uncertain of your obligations under the program, contact the program office for full clarification.
If you worked with an agent, the agent may have helped walk you through the various points of the program. If you didn't understand the DAP program fully at that time, you can still contact your agent to review the program and answer questions. Most agents welcome the opportunity to assist you with questions even well after the purchase of your home.
Either way, don't be shy about contacting the DAP program office or your agent to ask for help.
Kimberly Barton, REALTORÂ®
CRIS, AHWD, Certified Short Sale & Foreclosure Adviser
Champion Realty, Inc.