1st Time Home Buyer Credit - Too Good to be True?

I am cruising through the Turbo Tax website doing my yearly taxes. This year, I'm more excited than before because I keep hearing talk of a new 1st time home buyer credit. I enter my information into the system and holy cow it says I'm going to get $7,500 back. I have never had so much cash on hand. It can't be true, can it? There isn't a great big explanation and a part of me screams "Hit submit before they change their minds!!!" The other more sensible side of me is saying if it sounds too good to be true, it probably is.

I decide to hold off on filing for the time being to research this so called tax credit. What do I discover you ask? The 1st time home buyer credit is a sham, a fraud, the complete opposite of a credit. It is a no interest loan that must be repaid within 15 years or if you sell your home. If you sell your home, Uncle Sam will have his hand out to collect any balance due at closing time.

The bottom line, if you are a spend happy kind of person do not give in to temptation. Avoid this tax credit. If you are a saver, take the credit and put it into a high interest savings or Money Market account and don't touch the money!

Happy tax season!