The $8000 Incentive to Buy A Home in 2009

Great news for anyone thinking of buying their first home or who anyone who hasn't owned a home for the past three years.

An $8,000 federal tax credit, available to people who are buying their first home this year, coupled with continued low interest rates, is fueling what may be the start of a housing sales upswing. Real estate agents say the credit, signed into law last month, has the potential to lift an ailing real estate market, which saw home sales plummet this past year.

The funds are available to first-time home buyers or someone who has not owned a home for at least three years. They must purchase a home by Dec. 1, and their adjusted gross income cannot exceed $150,000 for a joint tax filing or $75,000 for an individual.

The legislation is part of the American Recovery and Reinvestment Act of 2009. Buyers also can receive the $8,000 this year when they file their taxes, if they bought a home in early 2009.