Update on First Time Home Buyers Credit and MORE !

SC State Housing Urges House to Pass Home Buyer Tax Credit

The first-time home buyer tax credit extension has not only been popular nationwide, it has provided a much-needed shot in the arm for the housing industry - which traditionally is at the forefront of an economic recovery. But the credit is set to expire on November 30 unless Congress passes an extension.

The Senate voted Wednesday, to extend the credit. The House could take this up as early as today. Valarie Williams, executive director of SC State Housing is urging the state's congressional delegation to support the extension to help first-time home buyers and boost the state's economic recovery. "We welcome any effort taken to extend the First Time Home Buyers Tax Credit for a limited period," said Williams. "This credit has helped bring new families into the housing market. Those buyers, in turn, helped reduced the inventory of unsold homes." She said that September was South Carolina's best month for home sales since mid-2008 and is certain the tax credit contributed to that growth.

Williams did offer a cautionary warning. "In extending the credit, we urge Congress to include strict measures to combat tax fraud and protect responsible homeowners," she said. "These measures should include setting a minimum age for home purchase and requiring documentary proof of the purchase in order to receive the credit. That's the only way to ensure the program works and is accountable to all."

The home buyer credit extension will:

• Extend the current $8,000 credit until April 30 for first-time home buyers.
  
  
• Create a new $6,500 tax credit for buyers that have lived in primary residences for at least five consecutive years out of the last eight. This credit will also expire April 30.
  
  
• Require homebuyers to enter into contracts to purchase their homes by April 30 and close by June 30 to be eligible for the credits.
  
  
• Expand income eligibility to $125,000 for individuals and $225,000 for couples. The same limits apply to the credit for homeowners.
  
  
• Exclude homes with purchase prices exceeding $800,000