Yes. This is a no interest loan in the form of a tax credit. It is to be repaid in equal installments over a 15 year period begining the following year. The amount is 10% of the purchase price with a maximum of $7500.
Hope this helps,
That depends on when u purchased your home. The Bush legislation of 2007 and promoted frequently in 2008, required one to payback. However, the newest leglisation does not require you to pay back and provides provisions for those who may wish to apply for the non-payback plan. See http://www.federalhousingtaxcredit.com/2009/faq.php#10 or your tax advisor for the most accurate, up-to-date (as it is ever changing) information.
I don't think you'll have to wait until next year to buy to get the homeowner's credit as "NonRealtor" states. Please take a look at this news story - the $15,000 home buyer credit has alredy passed the Senate. It's expected to be signed by the President very soon.
The proposal would allow a tax credit of 10 percent of the value of new or existing residences, up to a $15,000 limit.
Yes, however this tax credit is such a great opportunity if you look at it. It's INTEREST free money that you only have to pay back in a amortized term of 15 years. If you get the full $7,500 which is usually the case since the max is 10% of the purchase prices and most homes are more than $7500. You do need to confer with someone in the tax profession to understand fully how this can work for you, but here's food for thought.: if you took that Interest free money and invested it into a secured investment even getting you a 4% return on your money, You stand to make almost $4,000 PROFIT off of that tax credit and that's after you've paid it back. The possibilities and opportunities are there, you've just got to do a little home work.
Hope that also helps.