Unfortunately, for the average person the first time home buyers tax credit has expired and is no longer available to someone looking at purchasing a home. However, if you are one of the more than two million men and women that are serving in the military and served on extended duty outside the United States between January 1st, 2009 and May 10th, 2010, you may still qualify.

What the government’s first time buyer tax credit is is a system whereby new home buyers can receive up to $8000 back on their taxes when they purchase their first home. This allows them to then roll-over the money into the home or use it on expenses to help ensure that the home is paid off properly and avoid foreclosure. If they end up owing the IRS at the end of the year, the cost will be deducted from the credit and the remainder will be refunded to the buyer. For repeat buyers there is also a $6500 credit that is available to them for the same purposes.

Because so many men and women in the armed forces were over-seas and not fully aware of the tax credit to home buyers, the government has extended the process for up to a year (depending on service) from the previous deadline of September 30th, 2010. This is a great way for buyers to save money on purchasing a home and can help them to continue making payments and ensuring that they are able to remain in their home for many years to come.