$8,000 tax credit for home buyers

TERRE HAUTE, Ind. (WTHI) - With a Dec. 1 deadline, time is running out for the $8,000 tax credit. First time home buyers or folks who haven't owned a home in the last three years qualify.

There are some restrictions are: You must own the house for three years; you can't buy from a close relative, like a parent; and illegal immigrants aren't eligible.

Real estate agents say Wabash Valley home prices have hit bottom. Before prices increase folks should check out their options.

"There is no downside," said Terre Haute realtor Bert Williams. "For an $80,000 home, a buyer can put as little as $3,000 down, get back $8,000 from Uncle Sam. That's a $5,000 gift."

This credit is good for a maximum $8,000 or 10 percent of the home's price. Folks can either file an amended 2008 tax return or file for the credit on 2009 taxes.