Earlier today, President Obama signed legislation that extended and expanded the first time homebuyer’s tax credit. Here are the details on the restructured credit;

• The $8,000 [or 10% of the purchase price, whichever is less] first time homebuyer’s credit is extended under the same basic rules as now. To take advantage of the credit, homebuyers much have a property under contract by April 30, 2010 and close on that property by June 30, 2010.
• There is a new $6,500 [or 10% of the purchase price, whichever is less] tax credit for current homeowners. To qualify, you must have owned the same property for five consecutive years of the previous eight. The same deadlines apply [under contract by April 30, close by June 30].
• The purchase price of an eligible property must by under $800,000.
• The income limits for the credit have increased to $125,000 for single taxpayers and $225,000 for married taxpayers filing jointly. There is a phase-out period above that with the credit phasing out completely at $145,000 for single taxpayers and $245,000 for joint taxpayers.

Over the last few months, I’ve heard from many people who wanted to take advantage of the $8,000 credit, but had old problems that prevented them from getting a mortgage by the end of November. Now, those people have another six or seven months to take advantage of this historical opportunity for home ownership. If you would like to explore how you could buy your first home, or move up to a larger one, please email me and we’ll get started

Tags: first-time buyers

This entry was posted on Friday, November 6th, 2009 at 10:13 pm and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.