Home Buyer Tax Credit Expansion Approval Expected

By The Chris Baynes Team

Although some details are yet to be worked out, key senators reached an agreement to extend and expand the tax credit available to those purchasing a home for 7 months. Not only does the plan extend the current credit to first time home buyers, it will also be available to those "move up" buyers that have owned thier current home for at least 5 years. The amount of credit for existing homeowners will be up to $6500.00.

Income limitations will rise with both credits to $125,000 for individuals and $225,000 for couples. Contracts will have to be signed by April 30, 2010 and closed by June 30, 2010.

This extension is expected to help new and existing home sales as well as to soak up some of the foreclosures which have been diluting home values.

Final revisions should be completed by next week and it should see a fairly smooth completion and enactment could come as early as next week.