“We have a large dog, so a fenced-in yard was a big deal,” said Ted, 29, a web developer at NC State. Two months later, he and his wife of three years fell in love with a $200,000, 3-bedroom beauty near Fuquay-Varina — with the yard of Titus’ dreams.

The half-acre lot pushed their original budget by $35,000, but luckily for Titus, the Giros knew about the first-time homebuyer’s tax credit. It sweetened the deal to the tune of $8,000 and gave the young couple extra incentive to take the plunge.

“I read about it earlier in the year,” Ted said. “[I told Allison] ‘hey, if we buy before December 1, we’ll get $8,000 back.’”

The American Recovery and Reinvestment Act of 2009 was passed in February as part of the national stimulus package, and gives up to $8,000 back to qualified first-time buyers. Unlike earlier tax benefit programs, you don’t have to pay it back.

“We were able to afford a much nicer home,” said Allison, 33, who also works at NC State as a workshop coordinator.

Experts predict the tax credit to push about 300,000 more home sales in 2009. For locals like the Giros, it put them on the fast track to the American Dream.

Not your typical starter home

“The combination of lower prices, lower interest rates and the tax credit has given us more bang for our buck,” said Ted.

He first read about the program online. Having moved from Florida two years ago with the goal to buy, he and Allison had been browsing photo galleries on the internet for over a year.

“We’d planned to buy regardless,” he said. “[The credit] was just an added perk.”

Relatives referred them to Sharon Riccobono, a real estate agent from Coldwell Banker Howard Perry & Walston, who showed them four houses before they found their gem.

Allison said the tax credit, which stipulates you have to live in your new home at least three years, re-drew her picture of a “starter home” — gone was the idea of a town home they’d fix up and sell in five years.

“We started looking for a home we’d be in 10 to 15 years instead,” she said.

The Giros applied for a Federal Housing Administration-backed loan, which requires a 3.5 percent down payment instead of the traditional 10 to 20 percent. Ted said it took a “couple extra pieces of paperwork,” detailing their employment and payment histories.

After determining they qualified for the tax credit — by not having owned property within the last three years and not exceeding the income limits — they filed an amended tax return for 2008. They also could have applied the credit toward their 2009 taxes. But by filing an amended return, they hope to receive their check quicker. However, Ted said they can’t submit the actual tax credit paperwork — IRS Form 5405 — until they occupy the house.

“The IRS Web site was the most helpful,” he said of navigating the process. He expects the credit within 60 days of moving in, but said there’s no official time frame.

“It’s like, ‘you’ll get it when we send it to you,’” Ted said. They’ve already earmarked the money for savings and a “buffer.”

Waiting for the check hasn’t stopped them from spending hours at Home Depot and Lowes, picking out paint swatches and fixtures. They close on the house July 22.

“The dog’s excited too,” said Allison.

No more rent

“I remember thinking whoever told me was lying,” said 24-year-old Kimberly Hardin of when she first heard about the tax credit.

The 2006 journalism and economics graduate — just three years out of UNC — didn’t expect to buy so soon. But when her lease expired earlier this year and interest rates lowered, she knew that she was finally looking at what she described as her “perfect storm.”

“I was tired of spending money on rent,” she said. Coldwell Realtor Kate Shoffner helped her find a 2-bedroom townhome in a “great location” in Cary. In the $150,000 price range, she said the mortgage payments are also less than her previous rent.

“It made sense for me,” she said. “It was a good investment.”

What had held her back before the tax credit was the worry of depleting her savings for a down payment, and being left to live in bare-boned rooms she couldn’t afford to furnish.

“I didn’t want to be house-poor,” she said, explaining that the future $8,000 check made her feel “a little bit better.”

“It’s my money — I don’t have to pay it back next year,” she said. “I’ll be able to get things like window treatments and an extra trash can. I can order a pizza on a Friday night if I want to.”

Hardin moved in on Memorial Day weekend. She plans on filing her credit paperwork with next year’s taxes. Even though the big check calms some of her financial fears, she’s still keenly aware of the responsibility she’s taken on.

“I’ve never been in debt,” she said. “Taking on 30 years worth of debt, with the uncertainty of the job market, makes me nervous.”

She cautions others who may be tempted to buy just to get the stimulus check.

“I don’t think you should buy a house to get $8,000. It’s for people who are on the fence,” she said. “It gets them over the fence.”

In the meantime, she’s holding onto her research and marketing job at Best Practices in Chapel Hill — and investing in some things she’d never imagined buying.

“Bathroom hardware, ceiling fans, tool box, ladders, screws — there’s a million things that go with it,” she said. “I don’t know how to fix a toilet. I’ll have to learn.”

For more information on the first-time homebuyer’s tax credit, visit federalhousingtaxcredit.com or irs.gov.