Homebuyer Tax Credit Extended, and Now Includes Previous Homeowners

Congress gave final approval to legislation expanding an $8,000 tax credit for first-time home buyers. The House passed the extension on Thursday and President Obama is expected to sign it today. The new bill extends until April 30, 2010 for the tax credit for first-time homebuyers that would otherwise expire at the end of this month.

Changes:

The new legislation will allow the credit for couples earning up to $225,000 a year and individuals earning up to $125,000. That's up from the current $75,000 limit for individuals and $150,000 for couples.

Current Homeowners

The new bill will allow homebuyers who have owned their prior residence for at least five years to receive a $6,500 credit. Those who sell their new home or no longer use it as their main residence within three years would have to repay the credit. Homes worth more than $800,000 wouldn't be eligible.

Moving Forward

The homebuyers' credit will hopefully pave the way for stabilization in the housing market. The government has also made recent attempts to get the economy moving in other areas such as the now expired "cash for clunkers" program, and the recently initiated government appliance rebate program, but these programs wont be able to deliver a boost to the economy that a strong housing market can deliver.

For more news and information about purchasing a home or refinancing you can visit http://www.CHFAMortgageLoan.com or call (800) 922-3210.