The First-Time Homebuyer Credit Certification refers to IRS Form 5405, which taxpayers used to claim the federal First-Time Homebuyer Credit for homes purchased during 2008, 2009, or 2010. This credit was part of programs enacted to stimulate the housing market after the 2008 financial crisis.
There were two versions of the credit:
- The 2008 version acted like an interest-free loan up to $7,500, requiring repayment over 15 years via Form 5405. If the home was sold or ceased to be the main residence before this period ended, the remaining credit had to be repaid in that tax year.
- The 2009-2010 version provided a credit up to $8,000 that did not require repayment if the homebuyer lived in the property for at least three years.
To claim the credit, taxpayers submitted Form 5405 with their federal tax return for the purchase year. The form required certification that the taxpayer (and spouse, if filing jointly) had not owned a main home during the previous three years, plus details like purchase date, address, and price.
Although the credit program expired in 2010, some homeowners who claimed the 2008 credit may still have repayment obligations through 2025, depending on when they made their purchase and whether they kept the home as their main residence.
Understanding these repayment rules remains important. The IRS provides resources such as the First-Time Homebuyer Credit Account Look-up to check outstanding repayment balances.
For more detailed information about the form and repayment, see our related article on Form 5405 – Repayment of the First-Time Homebuyer Credit. Additional context on this credit program is available in our glossary entry for the First-Time Homebuyer Credit.
This article is for informational purposes and does not constitute tax advice. Consult a tax professional for personalized guidance.
Sources:
