Novice homebuyers, whether you are purchasing a new or pre-owned property, you are eligible for a $8,000 homebuyer tax credit. This is a powerful bonus for those who have been harboring a dream of owning their own property for a long time. When you compound the homebuyer tax credit with the unprecedented costs you’ll find in this buyer’s real estate market, many people who never could afford their own home before are realizing the opportunities of their dreams.

Because the tax credit is open to 10% of the house’s value up to $8,000, the $8,000 homebuyer tax credit could essentially save you a lot more on your taxes, depending on the size of your home. The homebuyer tax credit was a function of Obama’s stimulus plan that was directed towards addressing the struggling housing market in an effort to get the economy to recover its footing and get currency flowing again.

Claiming the tax credit is easy. You simply claim the purchase of the home and the credit on your tax return. The credit will be taken off any taxes you owe or tallied to your refund. If you’ve dreamed of possessing your own home, there couldn’t be a better time. You won’t find this kind of tax incentive often, and combined with the current conditions in the housing market, it’s really a win win situation for first time homebuyers.

Stop renting. You might actually save money if you buy. With the savings from the $8,000 homebuyer tax credit, you could find a loan that has lower payments than what you pay for rent this month, but you won’t be tossing it away or investing in the college fund of your landlord’s children. Thanks to the homebuyer tax credit, you’ll be investing it in your own future, owning a home that can be a substantial asset. It’s a perfect way to build credit and capital to make your path into the world.