Yes the $7,500 credit is available if you purchased your home after April 9, 2008. It will continue to be an option till July 1.

Another choice is to go for the $8,000 tax credit that became available as of Jan. 1 and will be in effect until Dec. 1. The differences between the two are huge. Currently the $7,500 credit has to be paid back over a 15-year period. The $8,000 credit is yours to keep. No repayment required as long as you stay in your home for three years. You can also use the Washington State Housing Finance Commission’s down-payment assistance programs with the new tax credit. If you are ambitious you could buy your house today, file for an extension on your taxes, and claim/receive the credit this year. Or, if you purchased your home in early 2009 and have already filed your 2008 return to receive the $7500 tax credit, you might be able to file an amended 2008 return. Best to consult a tax adviser when filing amended returns.

Some Key Factors:

First-time home buyer is defined as someone who has not owned a principal residence during the three-year period prior to the purchase.

Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit. Some higher incomes may qualify for a partial tax credit.

A tax credit is not the same as a tax deduction. A tax credit is a dollar-for-dollar reduction in what the taxpayer owes. For example a taxpayer who owes $8,000 in income taxes and who receives an $8,000 tax credit would own nothing to the IRS.

This credit applies to any kind of home, new construction, manufactured, custom built, resale even houseboats.

You must live in the home as a principal residence for at least three years or you will be dealing with recapture of the tax credit.

One of the great loan options available is the U.S. Department of Agricuture’s Rural Development Loan. This program can provide 100 percent financing. However, the home must be located within the rural housing zone as determined by the USDA. Also there are income limits. Typically anything outside of the Bremerton city limits would qualify.

The USDA Loan allows zero down payment and all of your closing costs could be paid by the seller. What a great opportunity.

Renters: step into your own home, and start paying yourself instead of a landlord.

We will be covering this and many other topics at our first-time home buyer class on April 18 at the North Kitsap Fire & Rescue headquarters. Call us at for more information at (360) 297-2661 .

It’s free.

Contact Tracy Corriveau and Kim Poole at Windermere in Kingston, (360) 297-2661.