IT PASSED! First Time Homebuyer Tax Credit Extended.$6500 Refund for New Primary Residence

The Senate voted to 98-0 to extend the First Time Homebuyers Credit to April of 2010. It should be sent to the House for a vote sometime today. First Time Homebuyers will need to have a contract in place by the last day of April with a close by the last day of June to qualify.

In addition on this bill they have added $6500 refund for homeowners who will be buying a new homestead property. If the buyer has owned a primary residence for 5 consecutive years out of the last 8, they will qualify with some stipulations. The purchase price of the home can not be more then $800,000 and their income can not be more then $125,000 for an individual or $225,000 for a couple.

A homebuyer will also be able to claim the credit on their 2009 income tax even if they do not close until 2010.

So now we just sit back and wait to see if it passes the next stage.

Well now we know. President Obama did sign the bill so we are on our way. Call your favorite realtor or lender and find out how this can work for you.