Homebuyer Tax Credit Extended and Expanded!

This is great news for the entire real estate industry! The $8000 first time buyer tax credit has been extended. The definition of a first time homeowner is a person or couple who has not had an ownership interest in a home for the past 3 years. The measure will extend the first-time homebuyer tax credit until April 30, 2010. In addition, those who have signed a contract before May 1, 2010 will have 60 days to close on the home. This also increases the income limits to $125,000 on a single return and $225,000 on a joint return

Also, for the first time, now existing homeowners can take advantage of a tax credit, which is $6500. This can be used by homeowners who have used their existing home as their primary residence for 5 consecutive years of the 8 last years. The $6,500 tax credit will be eligible on purchases between December 1, 2009 and May 1, 2010 and will have 60 days to close on the home. The income limits are $125,000 on a single return and $225,000 on a joint return and have a $20,000 phase-out thereafter.

So, if you've been waiting to buy a new home, this should help. Get out there and start looking!!
Alice Ohme