by Tammy Stoner

Created on: December 17, 2009   Last Updated: December 29, 2010

The first time home buyer tax credit can provide multiple benefits for the individual that qualifies. If you can benefit from this tax credit, there has never been a better time to jump in and purchase a home, then right now.

The top 10 things you should know about the first time home buyers tax credit.

1. You can put up to $8000 in your pocket for buying a home in 2009, if you are a first time home buyer.

2. A first time home buyer is considered a first time buyer, as long as they haven't owned a primary residence in the last three years. That means you may have purchased a home in your lifetime, just not in the last three years.

3. You get up to 10% of a home purchase back from the US government, as long as it doesn't go over $8000.00. That's free money compliments of the United States government. Isn't it time you take your bailout?

4. If you have owned a vacation home, or rental home in the past three years, this doesn't disqualify you for the first time home buyer tax credit.

5. You must live in this home as your primary residence. You cannot buy the home, and then rent it to tenants.

6. The homeowner tax credit applies only when you buy a home in the United States. You cannot purchase a home in the Cayman Islands and get the tax credit.

7.Second homes do not qualify for the homeowner tax credit. It cannot be a vacation home or rental home. It must be your primary residence.

8. You may claim this tax benefit even if you have no tax liability to offset. A tax credit allows taxpayers to claim dollar for dollar reduction in money owed to the IRS. If you owe the government 6,000 in taxes, and purchase the home, you owe the government nothing. You can't beat free money.

9.The income limits for obtaining the tax credit are 75,000 for single homeowners, and 150,000 for married couples filing jointly. If you or your spouse earn more than this amount, the tax credit will be reduced accordingly.

10. If you owe the government no money in taxes, the government sends you the money.

There has never been a better time to purchase a home than  right now. If you can qualify, jump in and take advantage of the 2009 homeowner tax credit. You will be glad you did.

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