Home Buyer Tax Credit To Be Extented

It's now on the President's desk and just needs his autograph.

President Obama should be signing the extension and expansion of the first time homebuyer tax credit today as part of H.R.3548 - The Worker, Homeownership, and Business Assistance Act of 2009.

Here're the highlights of the new tax credit:

• Remember, you are considered a first time homebuyer and are eligible for the $8,000 credit if you have not owned a primary residence in the past 3 years.
• You must have an accepted offer on or before April 30^th, 2010
• Purchase transaction must be closed before June 30, 2010
• Previous homeowners can claim $6,500 instead of $8,000 (for tax payers filing joint or single) and $3,250 or $4,000 (if married filing separate) as long as they've lived in their primary residence for the past 5 years.
• In order to qualify for the $6,500 credit you must have lived in your primary residence (as claimed on your tax returns) for five consecutive years out of the last eight years.
• Income limits have been raised from $75,000 for single tax payer and $150,000 for joint to $125,000 for single and $225,000 for joint.
• Maximum purchase price of any qualifying single family residence is $800,000.

SPECIAL EXTENSION

There is a special extension for any qualified extended duty armed forces (military, foreign services, intelligence) serving out of Country.

If a person is out of Country on official government duty for at least 90 days during the period after December 31st, 2008, and before May 1st, 2010 - They or their spouse will be eligible for the tax credit extended until the same dates (in Contract on or before April 30th, close on or before June 30th) of the year 2011.

If you plan on taking advantage of this credit I'd suggest that you start NOW. Choose you Team (Realtor & Lender), get pre-approved and get the process started.

To Your Success -

Maria