First time homebuyer tax credit

VIRGINIA BEACH, Va. - Sometimes in life, you just have to brag.

"It's all mine. I'm very excited, I'm so excited," said Courtney Baker.

The first time homeowner can't help herself.

"I love it here, it's perfect," she continued.

Baker knows a secret and wants to let the cat out of the bag -  we're in a buyers market!

According to the Real Estate Information Network, there are more than 14,000 listings in Hampton Roads right now with a Median sales price of $225,000. And get this, the government is giving away an interest free tax credit to first time homebuyers.

"It's a no brainer. It's like, why not, everybody could use 7,500 dollars right now," said Caldwell Banker Realtor Dave Hopper.

Here's how it works. You must be a first time homebuyer. The credit is 10 percent of the cost of the home, up to a maximum of $7,500. There's an income restriction of $75-thousand per person and $150-thousand per couple. If you make more than that, you still qualify, but the credit will be reduced. And finally, you must pay back the credit within 15 years.

"It's free money. It's zero percent. There's no interest and it averages about 500 dollars a year," said Hopper.

Conditions Baker likes.

"I just know when we file our taxes this year that we just have to let them know and there's 7,500 dollars. Merry Christmas," said Baker.

She's thinking a lot about the holidays this year. Baker finally has a place big enough for a party.

"My parents are coming in for New Years and I just, for once, I'm actually proud. This is mine. This is what I have, your daughter did pretty good, so I'm happy," she smiled.

Related Link: More Information on the First-Time Homebuyer Tax Credit