I was wanting to get opinions on the First-Time Home Buyer Tax Credit. I've looked over the website and it looks to be just a loan from the government. I was wondering if any one has heard more about this. Like, do you think there would be long term problems from taking this or is it a good thing to take. I know it's optional but I'm trying to decide if it would be best to take it and pay some bills off or not even take it at all.

What you've read is correct. It's basically up to you if you want to take the $7,500 now.

I guess my main questions are:

How do I make the payments every year?
Will the government put a tax lien on my home for the loan?
Can I pay it back early?

I work for a manufactured homes dealer/installer and I discussed this topic with my boss in great detail one day. He's been in the business as well as the mortgage business for years and in a nutshell he said he wouldn't take the tax credit as it has to be paid back over a period of years. I'm not up on just how to pay it back early. You might want to call them up and ask them before you take the plunge.

You pay it back in 15 installments over the next 16 years (skip 2009). Basically all they do is tack an extra $500 ( or 1/15 of your credit) to the income taxes owed every year.

I am taking it. Its an interest free loan. In essence, I can take the cash, drop it in a high yield (or what passes for high these days) bond and just pay back the principal and keep all the interest. If you actually save the money (or pay off high interest debt) it could amount to significantly more than the 7500 loan.

I don't know how to pay it back early either, but it is interest free, so why would you?

Thanks for the responses.

I read on a site somewhere that basically the way you pay it back is with your taxes. For example, in 2010 if you get a 700 dollar refund and you took the tax credit, the government would keep their 500 dollars. If you ending up owing the IRS, the 500 dollars would be added to the debt.

I have thought about getting it and saving it. Maybe in a saving account or CD, but I also am reserved to, as twinkiedooter says, "take the plunge." I still feel that the government isn't telling us everything. Anyone know where to find the small print on this?