How the new government regulations

The mortgage industry is certainly under going many changes to help provide homebuyers better information when it comes to financing a home.We're providing this document to help you understand some of the new regulations and investor requirements that are taking effect - especially those that impact timelines. -Wells Fargo

First-Time Home Buyer Credit at a Glance

■ The tax credit is available for first-time home buyers (taxpayers who have not owned a principal residence in the three years prior to the date of purchase).
■ The credit is 10% of the cost of the home, not to exceed $7,500 ($8,000 for 2009). The credit is refundable, which means you'll receive it even if you don't owe any tax.
■ The credit is reduced for individuals with modified adjusted gross income (MAGI) between $75,000 - $95,000 ($150,000 - $170,000 if married filing jointly), and is eliminated for individuals with MAGI above those amounts.
■ Available for homes used as a principal residence and purchased on or after April 9, 2008 and before December 1, 2009.
■ For homes purchased in 2008, the taxpayer can claim the credit when filing the 2008 tax return.
■ For homes purchased on or after January 1, 2009 and before December 1, 2009, the taxpayer may claim the credit on a 2008 or in 2009 tax return.
■ The tax credit for a home purchased in 2008 is similar to an interest-free loan. It must be repaid over a 15 year period. Payments are made in 15 equal installments starting in 2010. Generally, the credit must be repaid sooner if the home is sold or no longer used as a principal residence before the 15-year period is up.
■ The credit for a home purchased in 2009 does not need to be repaid unless the taxpayer sells the home or stops using it as a principal residence within 3 years of purchase. This applies whether the taxpayer claims the credit in 2008 or 2009.