First Time Homebuyer Tax Credit has Been Extended

HR 3548 was signed into law, extending the up to $8000 tax credit or 10% of the purchase price, offered to First Time Homebuyers, people that have not owned a house in 3 years. The original tax credit was due to expire on November 30, thus we had been scrambling to help buyers find properties. Now a buyer has until April 30, 2010 to get a home under contract, and until June 30, 2010 to get that home to closing.

On December 1, the income limits on the tax credit will change from the original guidelines of $75,000 to $125,000 for single people. And, from $150,000 for married couples to $225,000

Homebuyers cannot purchase a home for more than $800,000.

Effective immediately an existing homeowner may qualify for $6,500 if they purchase a home. Their principal residence must be owned for at least five consecutive years, in the past 8 years. These buyers may purchase a home immediately.

A buyer must own the home for at least 3 years in order to not have to pay back the amount of the credit.

The new law also requires new buyers to submit proof of their new home purchase with their tax returns, as there has been so much fraudlent activity in the program already.

Sandy Shores REALTOR®, Melbourne/Palm Bay FL Real Estate

Brevard County Real Estate & Investing

I also buy, sell, rent, own and manage Investment Property.