There has been a lot of interpretation and paraphrasing on the new Tax Credit. Below, for your information, is the mortgage bankers take.

A couple points of interest:

1. Iit is NOT a loan, and cannot be used for down payment money.
2. It DOES have a limit, based on the sales price of the property. Typically (but not always), in this area the maximum will be available.
3. It DOES have an income limit for full availability. Limits on both single and married buyers. It does phase out the more your earn.
4. It CAN be accelerated for use in 2008, or 2009 taxes.
5. There IS a “first time homebuyer” requirement, defined as 72 months (3 full years) of non-home ownership.
6. There ARE stipulations on the future use and sale of the home.

Overall, this is a tremendous benefit to first-time buyers, and just one of MANY reasons to that 2009 can be a banner year for first-time home purchasers!

(Commentary provided by Carl Mazzan with Choice Mortgage – an Affiliate of Wells Fargo Home Mortgage.)