Learn About the Extended Tax Credit-Great Time to Buy!
$8,000 Tax Credit For New Home Buyers
- As of Friday, November 6, 2009, President Obama has signed an extension & expansion of the popular first-tim homebuyer tax credit.
- Must not have owned a home for the past 3 years to qualify as a first time buyer.
- The extension takes the current tax credit and moves the deadline from November 30, 2009 until April 30, 2010.
- A sales contract must be signed by April 30, 2010 and buyers have until June 30, 2010 to close on a home.
$6,500 Credit For Move-Up Buyers
- $6,500 Expansion for Current Homeowners who sell their current property and purchase another home.
- The bill has been expanded to include current homeowners who have lived in their primary residence for 5 of the past 8 years.
- Current homeowners who close on a new primary residence will receive a $6,500 tax credit if they sign a sales contract by April 30, 2010 and close by June 30, 2010.
- The new home does not have to be more expensive than the current home to qualify.
- The $6,500 expansion is not retroactive and includes only homes closed on between November 6, 2009 and June 30, 2010.
INCOME LIMITS RAISED!
The new bill raised income limits for those eligible
- Individuals can now make up to $125,000/year
- Couples can now make up to $225,000/year
OTHER POINTS OF INTEREST
- The home cannot be more than $800,000 to be eligible for the credit in either case.
- Individuals/couples must live in the new home for at least 3 years otherwise the IRS recaptures the tax credit.
WHAT’S NEXT?
- First find a lender who is familiar with the tax credit and can pre-qualify you for a loan.
- Have your lender provide you with a pre-authorization letter stating the loan amount and type of loan. You will need this when submitting an offer.
- Once pre-qualified, contact a professional real estate agent to find you a home (that would be me….Jake Conklin….866-7866).