Updated November 6, 2009
Congress and the President have approved and signed a measure to continue offering a tax credit to first-time homebuyers and will offer a new tax credit to many buyers who already own homes. First-time homebuyers have been receiving tax credits of up to $8,000 since January as part of the economic stimulus package enacted earlier this year. But with the program scheduled to expire at the end of November, this legislation extends the credits to June 2010.
The new modifications of the homebuyer tax credit include:
1) The $8,000 tax credit will be extended for first-time homebuyers and is now available to buyers who have not owned a home for the past three years.
2) A new $6,500 tax credit will be available for repeat buyers who have owned and
resided in their current homes for at least five consecutive years.
3) To qualify, buyers in both groups must have a signed purchase agreement in place
by April 30, 2010, and close by June 30th.
4) Income limits were expanded to $125,000 on a single return and to $225,000 on a joint return.
5) The purchase price cannot not exceed $800,000.
6) Homebuyers must occupy the home as their primary residence.
7) The credit will be extended an additional year, until June 30, 2011, for members of the military serving outside the United States for at least 90 days.
This is a terrific time to buy a home due to the federal tax credit program, low interest rates, and a large inventory of properties. Please contact us for personal and knowledgeable assistance. Best wishes on your home buying journey!