If it is your first time to buy a home, then you are lucky. The tax credit is extended to individuals as an incentive for them to buy homes. With the definition of a first time home buyer being anyone who has not owned a house in the past three years to the day they intend to purchase a house.

One is qualified to receive the credit if they are buying new homes or property that is being resold. That means that if you want to buy foreclosed homes, you still qualify. The maximum sum of money that one can receive is $7, 500. The government credits this amount to your account when you buy property. The reason the government does this is to try and stir things up in the housing industry. Because of the credit crunch, real estate values are really low, but lending institutions are not willing to give loans to people to buy property. This means the credit crunch cycle continues. By giving you the credit, the government is nudging you to take a step out of the cycle.

Now is the right time to take advantage of the credit and buy you property, one of the reasons being that the offer is not indefinite but has a deadline to it. Therefore, you need to act fast to benefit. Again, interest rates have reached rock bottom at the moment. Buying foreclosure properties should then become more affordable for you due to their low value and the added credit you have. The only catch is that you have to repay the money over a 15 year period interest free or when you sell your property. Essentially, you are getting yourself a good deal.

Another advantage of the credit is that it is not difficult to acquire. The process is simple straightforward and fast. This means you do not need to put off buying that house that you have eyed due to bureaucratic procedures. Again, by the time you decide to resell your property, it may have appreciated in value, so that you rope in quite a profit.

If you are renting, you might consider getting a foreclosed property at this time. One of the requirements to getting the tax credit is that it must be your primary home.