The $5000 DC first time home buyers credit has been reauthorized for 2008 and 2009!! Yea! It was included in the Economic Stabilization Act which was signed into law by the President last week.
This is a much better option for buyers than the $7500 tax credit for first time home buyers that was also recently signed into law by the President. The biggest difference between the two: you have to PAY BACK the $7500 to the IRS. Basically, it's an interest free loan of $7500.
And no, for the crafty folk, you can't use both programs!! Refer to my previous post about Elizabeth Razzi's article. (Best Time to Buy? This fall...)
Interestingly, Elizabeth stated that both of the credits were available at the time. Not so and I never issued a correction. (whooops. sorry.) The $5000 DC first time home buyers credit had expired in 2007. GCAAR (Greater Capital Area Association of Realtors) had lobbied hard to get this credit reinstated to boost sales in DC. And it worked. Finally, some GOOD news for buyers! Let's hope it also boosts sales.