If you're on the fence about buying a home, Realtors hope a stimulus offer from Uncle Sam will help you make the move.

In this "On the Money" report, we look into who qualifies for the $8,000 tax credit and what realtors hope it does for the housing market.

"This is the public's, their part of the bailout," realtor John Flor says.

The government is giving first time home buyers or people who haven't owned a home in three years, $8,000 if they buy between January 1 and December 1 of 2009.

Flor, President of the Realtors Assoc. of Northwestern Wisconsin, says "it certainly does give hope for what's happening in the housing market. Would have loved to see it apply to all home buyers, but what we got should help a lot of people get into some homes if they take advantage of it in that time period."

Flor is also with Six Lakes Realty in Chetek. He says when the president signed the stimulus plan, he gave first time home buyers a reason to sign on the dotted line. "it's a great incentive for people."

Here's how Flor says the tax credit works:

1) The home you buy has to be your primary residence, it can't be a second home

2) It pays $8,000 or 10% of the purchase price, whatever is lower.
If you buy a $65,000 home, you'd get $6,500.

3) The credit pays less if you are a single buyer who makes $75,000 or married buyers who make $150,000 or more.

4) You don't have to pay it back if you live there for three years or more.

And he says there's a bonus if you already did your taxes, "if you already did your taxes and let's say you bought the home today you can go back and file an amended tax return and get the money now."

He says the tax credit acts like a refund on your taxes. If you owe $2,000 and buy a house, you'd get $6,000 back. If you buy a house and owe nothing on your taxes, you'd get the full amount of money.

"Can't be used as a down payment because you can't get it at the closing table but you certainly can get it very soon after purchasing the home," Flor adds.

He says he hopes potential buyers see the potential in the credit.
"If you're buying a a foreclosed home or something that needs TLC, $8,000 can go a long ways toward fixing a place up."

He says now is the time to buy, with historically low interest rates, sellers willing to negotiate and a lot to choose from. He thinks people who don't will look back and regret it, "it's a once in a lifetime event we'll never see prices this low again."

Flor says if this credit helps sales pick up, it will have an important impact. "This will help everybody, increases people buying furniture, utilities, helps the whole economy get going," he says.

Members of the realtors association told Flor they're starting to notice increased interest, but he still expects a bit of a slow spring. "I think the only thing holding people back right now is fear. Fear of losing their jobs, fear of the economy in general, fear of what's going on.
I can see the light at the end of the tunnel. 6 months or a year ago, I don't think we were seeing that quite yet, but now we are," Flor says.

If you're going with a pre-fab, or Design home type of purchase, builders say to qualify, you have to be living in the home by December 1, 2009.

If you want a mobile home, it has to be on a piece of property, not in a park.

If you want to build a home, the Chippewa Valley Home Builders Association says you can get the tax credit, but you have to close on the sale of the home with your contractor by December 1, 2009. If you own land and are acting as a general contractor, you may need to be living in the home by December 1.

Here are a couple of links to frequently asked questions:
www.federalhousingtaxcredit.com.
www.ranww.org.

Flor recommends calling a realtor if you have questions. You can also see your accountant to make sure you are meeting the tax credit qualifications.