Real Estate Glossary > F > First-Time Home Buyer Tax Credit Definition

A tax credit of $8,000 for first-time home buyers or those who haven't owned a home in three years. Income limitations do apply: a buyer isn't eligible if he makes more than $75,000 filing as an individual or $150,000 if he files jointly. If a buyer is using an FHA loan A loan with a low down payment and competitive interest rates that is insured by the Federal Housing Administration, a government agency that that provides funding for these loans from mortgage insurance payments. , he may be able to use the credit to help with a down payment The amount of money a buyer pays in cash at closing to fund a home purchase, usually expressed as a percentage of the total home price. . Otherwise, first-time buyers can file for the credit once they close on the home. The deadline to close on a home and still receive the credit is November 30, 2009.