$8,000

Amount of the federal tax credit you can receive as a first-time home buyer. Given that closing on a home can take four to six weeks or more, you'll need to act fast to take advantage of the $8,000 tax credit, since this program, part of the American Recovery and Reinvestment Act of 2009, is scheduled to expire on December 1, 2009.

(Note: Although the program refers to first-time buyers, you can qualify for the credit if you haven't owned a home in the past three years and you're under the income cap of $75,000 for a single buyer or $150,000 for a married couple.)

The home-buyer tax credit seems to have provided a boost to the housing market. Existing-home sales were up 7.2 percent in July 2009 from the previous month, according to the National Association of Realtors. "A combination of first-time buyers taking advantage of the housing stimulus tax credit and greatly improved affordability conditions are contributing to higher sales," said NAR Chief Economist Lawrence Yun in a release.
But the NAR is concerned that the housing rebound will suffer when the home-buyer tax credit expires, and some in Washington agree. The House and Senate have each introduced a bill (H.R. 1245 and S.1230, respectively) that would extend the tax credit; increase it to $15,000; allow any buyer to qualify; and eliminate the income cap.

Senator Johnny Isakson sponsored the Senate version of the bill. In early August, the Georgian Republican tried to attach it to cash-for-clunkers legislation, but was voted down 50 to 47. The stand-alone S.1230, like its House counterpart, is currently in committee.—Daniel DiClerico | e-mail | Twitter | Forums | Facebook

Essential information: Learn how to buy a foreclosed home and be sure to you get a thorough inspection of any property you're considering. Once you've bought your new home, refer to our Kitchen-Planning Guide and Home Improvement Guide interactive for expert advice on appliances, building materials, and more.