Tax Credit Home Buyers Bill to Extend & Expand the Tax Refund Opportunities

The President is expected to sign the Tax Credit Home Buyer Bill today. This will extend the tax credit of up to $8,000 for First Time Home Buyers. A single person making under $75,000 a year and a married couple making under 150,000 a year will qualify for the full credit. Those exceeding the limit will qualify for a phase out determined by their income. To qualify you must close on the property that you are purchasing prior to April 30, 2010. It has been my experience that several of my clients had waited to the last minute to identify the home that they wished to purchase and would therefore miss the deadline of November 30, 2009. Now they have the opportunity to move forward under less stress. If you are a First Time Home Buyer or know of anyone who is, it takes at least 2 months to get to closing once a property is under contract so now is the time to look for that perfect home. If you have owned a home in the past you can still qualify as a First Time Home Buyer if not have not owned a home for the last 3 years.

Also included in the new bill is a tax credit for those who are selling their home and have lived in it as their primary residence consecutively for the last 5 of the previous 8 years and as a single person you make less than $125,000 a year and a married couple must make under $225,000 a year. Those who exceed the income limits will be subject to a phase out determined by their income. To qualify you must also have the new property under contract by April 30, 2010 but unlike the First Time Buyer Program, you have until July 1, 2010 to close. This change addresses the issues we encountered in the First Time Buyers Program. Now present home owners have the opportunity to sell a starter home and move up to their dream home while taking advantage of the markets adjustment to affordable pricing and more importantly the lowest interest rates we have seen in the last 46 years.(See Attachment) Home owners who now find themselves in a home that is too large for their needs can feel comfortable selling the larger home and downsizing to a maintainence free home.

Please contact me to answer any of your questions and please feel free to forward this information to anyone you know who is considering buying or selling a property. I am available to assist you in all of you Real Estate needs.