Many first time home buyers want to know how much they can save on the first time home buyer tax credit.  The answer is either $8000 or $6500.  If you are buying your first home and you start the home buying process and are under contract by April 30th, 2010 then you will get a check for $8000.  If you are a move up buying and you have lived in your current residence for five years or more you will get a check for $6500.


It is very interesting to see that the current housing market has lost its appeal to those looking to refinance.  The refinance activity data continues to decline so the only thing holding home prices up are first time home buyers.  Many of these first time home buyers have had no sense of urgency because they have until April 30th to get their new home under contact.

With this being the case there is a very good chance that first time home buyers will start to come onto the market over the next few months to make sure that they take advantage of this tax credit.  Unfortunately, the first time home buyers might not be able to prop housing prices up much longer because the market is likely to start setting mortgage interest rates in the spring of 2010.  Only time will tell what will happen but the housing market could struggle during the later part of 2010.

Author: Jesse Wojdylo