If you are thinking about buying your first home in Meridian, now is a particularly good time to do it, according to Meridian Board of Realtors President Sonny Toms.

Interest rates are low, the local housing market is stable, and, most recently, the federal government is offering up to $8,000 in tax credits to first-time home buyers.

The best part, Toms said, is how “first-time home buyer” is defined. “If you’ve not owned a home in the past three years,” Toms said, “you can file as a first-time home buyer.”

Home buyers can file for a tax credit equaling 10 percent of their home’s purchase price – up to $8,000 for married couples filing jointly and up to $4,000 for individuals.

Toms said home buyers can file for the tax credit on their 2009 tax returns or amend their 2008 returns to get the money. Homes purchased between April 8, 2008 and Dec. 1, 2009 qualify for the credit, according to www.irs.gov.

First homes purchased in 2008 only qualify for a credit of up to $7,500, and that credit must be repaid over 15 years. As part of the federal stimulus package, the credit was increased for homes bought in 2009, so first homes purchased in 2009 qualify for the up to $8,000 credit, which does not have to be repaid. Higher income taxpayers may not be eligible.

Because Meridian did not experience the housing boom that places like Phoenix, Ariz. did a few years ago, Toms said Meridian is not feeling the slump now. Thanks to that, Meridian home buyers get to reap the benefits of the housing slump – such as the tax credit and lower interest rates – without feeling the pain of the slump that some other parts of the nation are feeling.

Toms said now is a great time to buy a home “whether it’s your first or your fifth” because of low interest rates, but that extra incentives are provided for first-time home buyers through the tax credit, employee programs, and lender programs.

When buying a home, first or otherwise, Toms said, “I think the first thing anyone needs to do is look at their financial condition to see how much they can afford.”

He said there is not magic formula to determine how much you can afford, because each individual has different spending habits.

Toms said the next steps for home buyers are getting pre-approved for a loan – and he recommends shopping around for the best lender – and finding a good realtor. Finding the right realtor and lender are key in finding the right home, he said.

Your realtor, he said, will work to find a home that fits your desires and is within your budget.

For more information on the first-time homebuyers tax credit, visit www.irs.gov and type “first-time homebuyer credit” into the search field. For more information on buying a home, visit www.hud.gov/buying.