Breaking the rules of the program can mean repaying all or part of the tax credit. The biggest taboo is moving or selling your home too soon. So, if you plan on flipping a house, this tax credit isn’t for you.
The program is designed to help low- to moderate-income home buyers buy homes and close the home affordability gap. It’s not geared toward investors. If you sell or move within 4 years of buying the home, you’ll have to pay back a percentage of the tax credit:
Within 1 year: Repay 100%
Within 2 years: Repay 75%
Within 3 years: Repay 50%
Within 4 years: Repay 25%