It's a new and improved version of the 2008 First-Time Homebuyer's Credit that should help make buying a home more affordable for many buyers. The credit has been increased from to $8,000, and doesn't need to be repaid. For purchases after November 7, 2009, a $6,500 credit is also available to qualifying repeat buyers.


Buy a first home and earn a tax credit of up to $8,000. This provision of the 2009 American Recovery and Reinvestment Act, the “stimulus” bill, can put $8,000 in your pocket to help pay for your new digs. Better yet, under legislation signed into law in November 2009, the credit has been expanded and made easier to qualify for.

As a result,if you would otherwise get an average-size refund when you file your 2009 tax return—about $2,400—qualifying to claim this new credit would boost your refund to more than $10,000.

Even better: Unlike the $7,500 tax credit available for Americans who bought their first home in 2008, this new version does not have to be repaid.