Long Time Homebuyer Credit 2010 Instant

In 2010, the U.S. housing market was still reeling from the 2008 recession, with home prices plummeting at nearly 20% annually. To combat this, the introduced a unique "long-time homebuyer credit" to incentivize existing homeowners to move.

Here is a look at how this credit worked through a typical scenario of the time. The "Step-Up" Story: Meeting the Deadlines long time homebuyer credit 2010

For this couple, the $6,500 acted as a "second chance" at government aid. Unlike the original 2008 credit, which was essentially an interest-free loan that had to be paid back over 15 years, the 2010 version was a . This meant if they kept the home for at least 36 months, they never had to pay it back. However, the process was notoriously complex: In 2010, the U

: The IRS required every claimant to file a paper return and attach Form 5405 along with a settlement statement to prevent fraud. Here is a look at how this credit

: Their joint modified adjusted gross income (MAGI) had to be below $225,000 to receive the full credit. The Benefit and the Paperwork