What is the purpose of this First Time Home Buyer Tax Credit?
The intent of Congress in creating this "First Time Home Buyer Tax Credit" is that it is supposed to assist the taxpayers of having to come up with closing costs and a downpayment.
But, the "First Time Home Buyer Tax Credit," however, acts more like a no-interest loan because it must be repaid to the government over 15 years ni 15 equal installments.
It really was to provide an impetus or a boost to the housing market. Clearly, if the pain of purchasing a new home can be eased, there would clearly be an eventual uptick in the housing market, or at least so say the economists and the financial experts.