The Homebuyer Tax Credit has been
extended and
expanded, so what does this mean
for you? The extension, recently signed into law, is part of the economic
stimulus program and includes these significant provisions:
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The $8,000 tax credit for first-time homebuyers has been extended to April 30,
2010.
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A $6,500 tax credit will be available for existing homebuyers when purchasing a
new primary residence after living in their home for five of the past eight
years.
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Income eligibility has been increased to a limit of $125,000 for homebuyers who
file as single or head-of-household and $225,000 for married couples filing a
joint return.
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The tax credit is a true credit, which means it does not have to be re-paid
unless the homeowner sells or stops using the home as a primary residence
within three years after the purchase.
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The eligibility period is for homes purchased after November 6, 2009 and before
May 1, 2010. Purchases under a signed contract by April 30, 2010 will qualify
for the tax credit with the stipulation that closing occurs prior to July 1,
2010.
The new law, coupled with historically low rates offers a tremendous
opportunity for first-time and existing homebuyers alike.
