What’s the definition of a principle residence?
Generally, a principle residence is the home where an individual spends most of his/her time (generally defined as more than 50%). It is also defined as “owner-occupied” housing. The term includes single-family detached housing, condos or co-ops, townhouses or any similar type of new or existing dwelling. Even some houseboats or manufactured homes count as principle residences. Are there restrictions on the location of the property? Yes. The home must be located in the United States. Property located outside the US is not eligible for the credit. Are there restrictions related to the financing for the mortgage on the property? In 2009, most financing arrangements are acceptable and will not affect eligibility for the credit. Congress eliminated the financing restriction that applied in 2008. (In 2008, purchasers were in eligible for the $7500 credit if the financing was obtained by means of mortgage revenue bonds.) Do I have to repay the 2009 tax credit? No. There is no repayment for 2
