The Worker, Homeownership, and Business Assistance Act of 2009 has extended the tax credit of up to $8,000 for qualified first time home buyers purchasing a principal residence on or after January 1, 2009 through April 30, 2010. Homes closing on or before June 30, 2010 may also qualify for this tax credit if the sales contract was signed by the April 30, 2010 deadline.

Combined with a $6500 tax credit for existing home owners purchase a new primary residence this bill was created and passed in the hopes to spur sales in the slumping real estate market. Some new homeowners may even qualify for special FHA financing, allowing them to apply their credit towards down payment and closing costs, giving some new home buyers the opportunity to get into a home with no money out of their pockets. .

Eligibility to Claim the $8,000 Tax Credit

First-time home buyers who purchase a new or resale home are eligible for the tax credit. A first-time home buyer is defined as a buyer who had not owned a principal residence during the three years prior to the purchase. Married tax payers must both meet this requirement in order to qualify.