Lisa Barton

Economic indicators are lining-up favorably for first time home buyers. Encouraged by several factors including: a first time home buyer tax credit, low mortgage interest rates, a high inventory and reduced home prices, first time homebuyers are driving the sales figures in the Jacksonville real estate housing market.

Buyers that would normally not have been able to purchase are beginning to understand that now there are affordable homes on the market. Many first time home buyers, as well as individuals who haven’t owned a home in the last 3 years, are eligible for a federal tax credit of $8,000. This tax credit became available on January 1st of this year and continues until December 1, 2009. The credit does fade-out as income increases starting at $150,000 for joint-filing couples or $75,000 for individuals. As long as the buyer owns the house as his/her primary residence for a minimum of three years, the tax credit does not have to be repaid. This is an improvement over the tax incentive that was established in 2008 that will need to be repaid over a 15-year period.

In addition to the U.S. Government tax incentive, the State of Florida is trying to pass into legislation a bill that will help at least 12,000 first time home buyers by offering advance loans through Florida Housing Finance Corporation. Lawmakers are calling this program the Florida Homebuyer Opportunity Program. This program will loan Floridians the amount of money they can expect in tax incentives up front, instead of having to wait until the end of the tax year.

Check back often to my website for updates on the Florida Homebuyer Opportunity Program and other first time homebuyer incentives.