Cross your fingers! Congress set to expand tax credit for buyers!

Buying a home with a tax incentive from Uncle Sam is almost here for a whole new crop of homebuyers.

First-time homebuyers have been getting tax credits of up to $8,000 since January as part of the economic stimulus package. But the program will expire November 30. The Senate voted Wednesday to extend and expand the tax credit to include many buyers who already own homes.

If the House approves the bill on Thursday, Nov. 6, buyers who have owned their current homes at least five years would be eligible for tax credits of up to $6,500. First-time homebuyers - or anyone who hasn't owned a home in the last three years - would still get up to $8,000. To qualify, buyers in both groups will have to close on a home purchase by June 30, 2010.

About 1.4 million first-time homebuyers have qualified for the credit through August. The National Association of Realtors (NAR) estimates that 350,000 of them would not have purchased their homes without the credit.

The credit is available for the purchase of your principal residence that would cost $800,000 or less, meaning vacation homes are ineligible. The credit would be phased out for individuals with annual incomes above $125,000 and for joint filers with incomes above $225,000.

The credit would be extended an additional year, until June 30, 2011, for members of the military serving outside the United States for at least 90 days.

Keep watching the news for updates on actions taken by Congress, or call me and I will tell you the latest info I have on the legislation.

Gayle Causey
318-614-5615
Realtor, Relocation Specialist

Keller Williams Realty, 1390 Hudson Lane, Monroe, LA USA
Each office independently owned & operated.