Have you been waiting for the “right time” to buy a home in North Carolina or South Carolina? Thanks to a new federal tax credit, that right time can be now.

The Housing and Economic Recovery Act of 2008 allows first-time home buyers (defined as buyers who have not owned a principal residence in the past three years) to take a $7,500 tax credit from the purchase of a single-family home, town home or condo. But good things don’t last: Only homes with closing dates on or after April 9, 2008 and before July 1, 2009 are eligible under existing legislation.

Qualifying home buyers simply claim the tax credit on their federal income tax return. The amount of the credit is 10 percent of the cost of the home, not to exceed $7,500. There are no additional forms and pre-approval is not necessary. Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit. Buyers with higher incomes can receive a partial credit. New construction and resale homes are both eligible.

The tax credit works like an interest-free loan and must be repaid over a 15-year period, or when they sell the house, if there is sufficient capital gain from the sale. A home buyer claiming a $7,500 credit would repay the credit at $500 per year; with repayments beginning two years after the credit is claimed.

The intent of the tax credit is to provide as large a financial resource as possible for home buyers in the year that they purchase a home. The credit will maximize the stimulus for the housing market and the economy, help stabilize home prices, and increase home sales. The repayment requirement reduces the effect on the Federal Treasury and assumes that home buyers will benefit from stabilized and, eventually, increasing future housing prices.

Whether you are looking to purchase a new home in Raleigh, a resale home in Winston-Salem, a condo in Charlotte or a house in Greenville, financing real estate has never been easier.