New federal legislation designed to boost the housing market and encourage first-time home buyers is getting mixed reviews from some Lawrence bankers and real estate agents.

One component of the legislation signed into law July 30 by President George W. Bush allows first-time buyers who qualify to get a $7,500 tax credit. That’s free money received after filing an income tax return next year. Any tax the buyer owes will be subtracted and any refund will be added.

There is a catch. The buyer has to pay that money back at $500 a year for 15 years.

“When you hear ‘tax credit,’ you think ‘oh boy,’ but does it really benefit them?” said Mark Heider, president of Commerce Bank. “I’m thinking it’s not enough to make a difference for the first-time home buyer.”

But Gary Nuzum has a different view.

Nuzum, vice president and broker at McGrew Real Estate, 1501 Kasold Drive, pointed out that first-time buyers will more than make up for the payback over time because of the income tax breaks they will get from owning a home.

Nuzum also noted that if a buyer sells the home before the tax credit payback is complete and doesn’t gain from the sale, the tax obligation is forgiven. If there is a gain, the remainder of the credit is recaptured in the sale.

“It’s truly a great deal for a first-time buyer,” he said. “I don’t see a downside.”

Doug Gaston, home loan officer at Douglas County Bank, also thinks the new law could benefit first-time buyers.

“If you live in your home for a long time, then I guess it makes some sense,” he said. “I’d do it. A tax credit today is certainly worth something.”

But buyers might need to pay an accountant to sort through the tax and finance details, Gaston said.

“I talked to a couple of customers who qualify and told them to check with their accountants,” he said.

Not many first-time buyers are aware of the tax credit option, said Randy Barnes, real estate agent with Realty Executives Hedges Real Estate, 1037 Vt. When they find out, the payback requirement is a concern to them, he said.

“It does give us some buttons to push,” Barnes said of the program. “If it helps get somebody into a home, then it’s a good thing; it’s just knowing that you have to pay it back that really doesn’t make it a credit.”

McGrew recently conducted an informational meeting about the program, and it was well-attended and stirred interest, Nuzum said. Another session will take place Wednesday.

The housing legislation has many provisions, including some intended to stop the decline in home values and provide help to owners facing foreclosure. It’s all contained in a 750-page document.

“There is a lot more to it than meets the eye, and there are some strings attached,” said Bob Buchanan, one of the owners and loan officers at First Assured Mortgage, 4830 Bob Billings Parkway. “I’m still weeding through it.”