In the recent years, a lot of people lost their home to foreclosures. You can now make use of the government grants aimed at debt relief to get your first home without fearing foreclosure. Based on the law, a first time home buyer can enjoy an $8,000 credit amount.

However, there are some things that you have to know. The home buyer should enter a contract to purchase a principal residence not later than April 30, 2010 and close it on/before June 30, 2010. Taxpayers can claim the said credit amount on the 2009 return or the 2010.

If you're a homeowner and you want to buy a principal residence, you can take advantage of this program. Through the law, your income limitations are raised when claiming for the credit. Members of Foreign Service, intelligence community, and military can also benefit from the program so make sure that you apply for it.

You need to file the application of the tax return and attach the Form 5405. This form is exclusively for the First-Time Homebuyer Credit and Repayment of the Credit. If you are buying a conventional home, you will need the Form HUD-1 (settlement statement). If you are buying a mobile home, you will need to provide the sales contract.

For a constructed home, you should provide the certificate of occupancy that shows your name as the owner, address, and the date. Even if you have been a homeowner for many years, but you've decided to buy a new principal residence, you may still qualify. However, the homeowner should have lived in the house for more than five years prior to buying the new home.

Investing on a home is great decision and thanks to the current administration's efforts to help people with their debts, anyone can buy a new principal home. Find a beautiful home that interests you now. This is your chance to own one without worrying so much about debts or mortgages.

The government grants aimed at debt relief vary, and you simply have to determine the options available to you. The grants don't actually solve all your debt problems but with the right programs, you can alleviate your debt situation.