The '09 First-time Home Buyer Tax Credit allows buyers who haven't owned a home in at least 3 years to receive a refund up to $8,000! The First-Time Home Buyer Tax Credit contained in the '09 Economic Stimulus Bill bumped the credit up to $8,000 (from $7,500 in '08) & the recapture (loan payback) provision was removed. HUD announced the tax credit may be used at the closing table. On 5/12/09, the FHA announced that homeowners can use the $8,000 tax credit at the closing table by "monetiziing" the tax credit through short-term bridge loans. The $8,000 tax credit can be used w/FHA loans to buy down the interest rate, help w/closing costs, or used in addition to the minimum 3.5% downpayment to put more money down at the time of purchase. The tax credit cannot be used to cover the initial 3.5% downpayment. The Ohio Housing Finance Agency (OHFA) on 3/31/09 announced the Homebuyer Tax Credit Advantage program - assisting homebuyers w/downpayment & closing costs & can be used w/the $8,000 tax credit. Eligible homebuyers who make their purchase between 1/1/09 & 12/1/09 can treat the purchase as if it had occurred on 12/31/08. Eligible buyers have 3 filing options for their '08 taxes: 1.If they purchase between 1/1 & 4/15/09 they can claim the $8,000 credit on the '08 return due on 4/15. 2.They can extend their '08 income-tax filing until as late as 10/15 (The taxpayer must file for the extension). 3.If they have filed their '08 return before they purchase a home, they may file an amended '08 tax return. Of course, '09 purchasers always have the option of claiming the credit for the '09 purchase on their '09 return, which is due 4/15/10. For example: •If you owe $3,000 in taxes & claim the $8,000 credit, you'll receive a $5,000 refund. •If you are due a refund of $1,000 & claim the $8,000 tax credit, you'll receive a $9,000 refund. •If you owe nothing & aren't due a refund, but claim the $8,000 tax credit, you'll receive an $8,000 refund!