Todays Buyers Have 8,000 Reasons to Become Homeowners in Coconut Creek, Florida

The federal government gave many potential home buyers a big incentive to become homeowners earlier this year with an $8,000 tax credit for qualified home purchases through November 30, 2009. Now the Federal Housing Administration has sweetened the real estate deal. Instead of waiting to file their taxes to receive the $8,000 credit, qualifying buyers who use FHA loans can access the funds immediately through short-term bridge loans.

Under the FHA program, buyers can add the amount of their tax credit to their 3.5 percent downpayment, which is required for FHA-insured mortgages; use the money to help cover closing costs; or buy down their interest rate.

The credit is available to first-time buyers and people who have not owned a home in the past three years, with certain income limitations. If the buyer is married, their spouse must also meet those requirements. Only people who purchase a primary residence - including single-family homes, condos, townhomes and co-ops - qualify.

Single buyers who earn up to $75,000 and married couples who earn as much as $150,000 may receive the maximum tax credit. The credit decreases for single buyers earning between $75,000 and $95,000 and between $150,000 and $170,000 for home buyers filing jointly.

The buyer must occupy the home for at least three years to realize the full benefit of the tax credit. If the property is sold during the three-year period, the entire credit must be repaid upon sale.

For more information about the $8,000 home buyer tax credit, visit www.realtor.org/taxcreditbasics.