It seems everyone who hoped for a $15,000 tax credit to buy a new home as primary residence will be disappointed. As Los Angeles Times reported that the proposal $35 billion credit to support mortgage sales was jettisoned in favor of a more modest $2 billion to $3 billion provision. The proposal would eliminate the repayment requirement in an existing tax credit for first-time home buyers, and raise the credit to $8,000 (not $15,000 tax credit as promised) from $7,500.

Is that good news or bad news? Whatever the President Obama will sign the proposal for stimulus bill package into law is which available $8,000 tax credit or $15,000 tax credit, more important for you as new homebuyers is how to: (1) tax advantage of the forthcoming homebuyer tax credit, (2) get a great rate on a mortgage, and (3) find a good property at a good price.

Let see what the advantage of homebuyer tax credit that consider on the proposal. The $8,000 tax credit is available only to first-time home buyers who buy a primary residence for this year, 2009. This tax credit does not require repayment and is claimed on a tax return and reduces the tax liability. If the tax liability is less than the tax credit, the unused credit will be issued as a check to the person claiming the credit. If you sell the home within 3 years, the entire $8000 tax credit is recaptured.

Meanwhile, get advice on finding a good deal on a new mortgage is must to do before if you really plan and decide to buy a new home this year while you wait what the government support.

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