All of us know that global economy is facing hardest times after 1929. Things may be worse this time as the size of population being affected by current economic slow down is HUGE. Though this melt down is being faced by all major economies across the globe, the effect on American economy is much hard. 

Slower or say negative growth in many industries, Loss of jobs, lesser purchasing power, poor consumption, rising prices all have contributed towards dampening the spirits of reforms. Government is trying hard to put public’s faith back in system. Every day bail out packages and similar relief and relaxations are announced for companies, banks and individuals alike. Government is trying every trick to make the economy grow toward positive regions and let the graph go north. 

The credit to first time homebuyers is one similar effort of the government to instil an upbeat feeling in masses and help grow various industries related to real estate, construction and allied businesses.  The announcements made for the credit for First time Homebuyer has started attracting people towards home buying and reconsider their on hold decisions for property purchase.

The American Recovery and Reinvestment Act of 2009 is a great and well thought upon stimulus package that will create and save millions of jobs across America. This job guarantee and new job creation will send back important currency rather say purchasing power in depleting economy and will help in reviving US economy in general. The $8,000 home buyer tax credit package earmarks much needed funds for tax exemptions, state and local fiscal relief, infrastructure and science, protecting the vulnerable, health care, education and training, energy and other things.

Owning a Home is a great feeling for any ambitious person and buying a home is much more satisfying feeling. Now government is encouraging people to come forward and take benefit of this stimulus package and help government to bring back the economy on track. Therefore, many incentives are on offer for first-time home buyers as well as incentives for home owners.

There are some rules and guidelines attached to avail the benefits of this package, some of them are as under-

a) This package can be availed by first-time home buyers;

b) Buyer can own a house individually or with spouse.

c) Beneficiary has to live in that home, and it should be their primary residence. 

d) This package offers Tax credits, it is not a loan. 

e) If the title of the property is transferred i.e. sold within 3 yrs, credit needs to be paid back.

f) All Home purchased between January 1, 2009 and December 1, 2009 shall qualify for this package.

g) An individual’s income should be less than $ $75,000 if married, couple’s income should be less than $150,000 otherwise this credit is not for them.

h) The first time buyer of the house should not be the relative of the seller. 

It is felt that government’s this act shall definitely give a boost to the economy as this stimulus will have far reaching effect across the industry and will help government to reinstate people’s faith in economy and the process of introducing various reforms that can have positive effect on public, industry and economy in same directions.