Tax Credit Explained Another Way
Note that this information is outdated.
“But for a first-time home buyer, the tax credit is a good thing because it’s really not a tax credit; it’s really an interest-free loan. If you look at it from that perspective, it’s a nice incentive for the first-time home buyers or people that need some assistance in purchasing a home.”
Yes, the tax credit technically is a zero-interest loan that you will repay to the government over 15 years, starting two years after the credit is claimed, at $500 a year.
If you sell the house, you repay the entire amount if there was enough profit to do so. If not, the amount that you don’t repay is forgiven.
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