In a long awaited move, the Senate and House voted in favor of extending the first-time homebuyer tax credit. President Obama is expected to sign the bill tomorrow. The amount of the tax credit to first time home buyers remains the same at $8,000. However, the bill includes some interesting amendments that are beneficial to first time homebuyers and current homeowners. All amendments and updates to the current bill become effective immediately when President Obama signs the bill. Here are some highlights of the new bill:
First Time Homebuyer Updates
- Tax credit remains the same at $8,000
- Property under contract by April 30th, 2010 will be eligible as long as the real estate closing occurs by June 30th, 2010.
- Income limits will be raised from $75,000 to $125,000 for singles and from $150,000 to $225,000 for married couples.
New Provisions for Current Homeowners
- Current homeowners are now eligible for a $6,500 tax credit on property under contract by April 30th and closed by June 30th, 2010.
- Homeowner must have used the home sold or being sold as a principal residence consecutively for 5 of the previous 8 years.
Now Is The Time
Don’t let this opportunity slip away. With the tax credit back on the table, and with interest rates and home values historically low, now is the time to buy. Give us a call and find out how easy it is to buy your first home or step up to another.
Thank you Congress – what is good for the housing market is good for the economy!