Can you really get something for nothing?
There are a few caveats, but generally, if you are a first time homebuyer in Silicon Valley or anywhere else in the U.S., you can now.
The government is offering a tax credit (not a deduction!) of $7500 to first time homebuyers who take the plunge between April 9, 2008 and July 1, 2009. This means that you'll have $7500 to use NOW to get your foot in the door with your first home purchase.
Unfortunately, it's a loan and not a gift, and you'll be paying Uncle Sam back at the rate of about $500 per year after a couple of years (interest free, though).
What are the exceptions? One exception, of course, is based on income (perceived need). If you're single and make over $75,000, or married making double that much, it appears you don't qualify. In San Jose, many residents make that much, but this should help teachers and others who are not so well compensated. But there may be a "partial credit" available for those making more than the limited amount.
The National Association of Homebuilders has great information on this available credit, so if you want to learn more, please visit their article on this credit.
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