Thousands of potential buyers of homes for sale in Huntsville are now homeowners, thanks to the first-time home buyer tax credit. You could be eligible for a tax credit if you bought a home in 2009 or plan to buy one before April 30, 2010.  But which one are you eligible for?

If you have two or three hours to spend reading the information about the homebuyer tax credit, you’ll be able to figure out if you’re eligible.  But, most people don’t have the time or patience. To shorten your learning curve, here are a few tips, pointers and frequently asked (and answered) questions about the tax credit:

Three Kinds of Homebuyer Tax Credits

There are actually three kinds of tax credits:

1. The original first-time home buyer tax credit, enacted in 2008, covers the homes for sale Huntsville that went off the market between April 9, 2008 and June 30, 2009. Rather than being a true credit, the money received is actually a 15-year, interest-free loan. In other words, it has to be paid back.
2. The second tax credit, raised from a maximum of $7,500 to $8,000, doesn’t have to be paid back. If you bought a home between January 1, 2009 and November 30, 2009, you may be eligible.
3. The third home buyer tax credit, enacted in November 2009, is actually an expansion and extension of the second credit. It extends the deadline of November 30, 2009 to April 30, 2010 and expands the credit to include long-term homeowners who want to buy a new residence.

Tax Credit Qualifications

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