Senate Passes Tax Credit Extension

Tax Credit Extended By Senate
for First Time Home Buyers
It looks like the bill is very getting close to the President's desk.

As of Wednesday November 4, 2009 the Senate officially passed the extension of the first time home buyer tax credit. The bill will now move into the House, and then to the President's desk for a signature.

The Senate has passed a 6 months extension on the first time home buyer tax credit of $8,000. Hopefully this extension will encourage more people to buy homes and help the housing industry bounce back quicker.

There is an $800,000 maximum for the purchase price of the home, and 2 income caps which have been set.

• First, if the couple makes a joint income of $225,000 or higher they will not be eligible for the first time buyer credit, and
• if an individual makes an income of $125,000 or higher they will not be eligible for the credit.

The senate bill also provides a new $6,500 tax break for existing homeowners who want to move up to a new home, as long as they have lived in their current residence for five consecutive years..

This bill is going to cost $10 billion just for the home buyer tax credit. With the current deficit as a country we cannot afford this bill. However, in order for our economy to have any hope of restoration it appears to be necessary.

Bill Ladewig

800.664.7283 (SAVE)

Bill@YourFhaGuru.com

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