First Time Home Buyer Tax Credit Expanded & Extended

Have you heard the First Time Home Buyer Tax Credit has been expanded and extended? The details of the tax extension, due to be signed by the President today, 11/6/09, are as follows:

*Recipients of the tax credit must ratify a contract no later than May 1st and close on their purchase no later than June 30, 2010.

*The tax credit gives up to $8000 for first time buyers (defined as not having owned a home for the past three years).

*This revised version also allows up to $6500 credit for move-up buyers (those who have owned and occupied their current homes for at least five years).

*Again, you have to be an owner occupant of this primary residence as there are no provisions for investors.

*Qualified recipients of these tax credits will have an income cap of $125,000 for single filers and $225,000 for joint filers.

*The purchase price of the subject property has a cap of $800,000.

*If the property being purchased fails to remain a primary residence anytime within the first 36 months, the tax credit will have to be repaid in full for that tax year.

Hopefully this bill will help the real estate market recover and encourage qualified first time homebuyers to make a move.

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