Breaking News - Home Buyer Tax Credit Extended and Expanded
Obama signed into law today the new homebuyer tax credit of $8000, which will basically extend the present tax credit, which was due to expire on Nov. 30th to April 30th, 2010. You have to have a contract in place by that time, although there is a grace period to close by June 30th, 2010. Income limits were also raised to $125,000 for single tax payers and $225,000 for a couple. The maximum house price is $800,000. If a buyer has not owned a home for the past 3 years they also qualify for the tax credit.
The credit has also been expanded to give a credit of $6500 to home sellers who are buying another home. They have to have lived in their home for 5 of the last 8 years to qualify. Income limits are the same as is the maximum house price.
There is no need to repay the amount unless you sell before 3 years.
If you have any questions, please fell free to give me a call. Some advice would be, if you are considering doing this don't wait until the last minute. In the past 1 1/2 to 2 months homes have been flying off the market for 1st time homebuyers. Also interest rates right now are still great! I read somewhere this week that they may be headed up at the beginning of next year. Also there are more laws coming up in January as far as FHA, which may make buying more difficult.