Rob & Jeannie Steward

Just like there are many types of buyers -- from investors to first timers -- there are also many different types of homes available for purchase. Certain buyers choose a multi-family home so they can earn income renting out the second unit or if they want to live close to a relative, but not share a living space.

Because the law states that a buyer must use their new home as a principal residence in order to claim the tax credit, those considering a two-family dwelling may wonder if they are eligible. According to the Internal Revenue Service, these buyers may qualify for the tax credit for the unit they use as their principal residence, but cannot claim the credit based on the full purchase price.

To figure out the amount of the tax credit that can be claimed, a buyer must divide the purchase price of the home between the two units. The allowable tax credit would then be 10 percent of the portion of the total purchase price that was allocated to the unit used as a principal residence by the buyer. The maximum credit amounts of $8,000 for first-time buyers and $6,500 for repeat buyers still apply.

Pending home sales rose again, marking eight consecutive monthly gains - the longest streak since measurement began in 2001, according to the National Association of Realtors®. The Pending Home Sales Index rose 6.1 percent to 110.1 from a reading of 103.8 in August, and is 21.2 percent higher than September 2008 when it stood at 90.9. The gain from a year ago is the largest annual increase on record, and the index is at the highest level since December 2006 when it was 112.8. Lawrence Yun, NAR chief economist, said the momentum is understandable. "What we're witnessing is a rush of first-time buyers trying to beat the expiration of the tax credit at the end of this month," he said. "Home values will stabilize sooner rather than over-correcting. That, in turn, will mean wealth stabilization for the vast number of middle-class families and lay the foundation for a durable economic recovery."

As you may know by now, the President signed a bill that included a new tax credit for both first-time and repeat homebuyers. This new legislation is very positive news, and will help stabilize the economy and allow even more Americans to invest in homeownership.

The new tax credit is an improvement over the existing one which expires on Nov. 30. Some of the enhancements it includes are:

• The $8,000 tax credit for first-time buyers has been extended through April 30, 2010.

• Current homeowners are eligible for a $6,500 tax credit through April 30, as long as they have lived in the home they are selling as a principal residence for five consecutive years out of the last eight years.

• Time has been added to allow for closing the home purchase. As long as buyers have a binding contract by April 30, they will then have until June 30, 2010, to close the transaction.

• Income limits for eligible buyers were increased to $125,000 for single buyers and $225,000 for couples.

The passing of this legislation is very positive news for anyone looking to buy or sell a home. Both first-time and move-up buyers can now take advantage of the new tax credit in addition to today's historically low interest rates.

We'll help you stay up-to-date about the new tax credit by providing additional information and resources in future editions of our blog.

There's nothing worse than having a major appliance break, especially since most people depend heavily on their dish washer and laundry machines. Then, there is the inevitable choice that must be made: whether to repair it or just get a new one.

Of course, the primary factor to consider when making a decision is the cost of the repair versus the cost of replacing the appliance, factoring in such things as tax, installation, and removal and disposal of the broken unit. According to Angie's List, a national consumer ratings company, these things should also be considered:

Age/History - Older appliances may require ongoing service, which could cost more over time than simply buying something new. On the other hand, if you have not had trouble with the appliance in the past, it might be worth fixing it.

Energy Efficiency - New appliances could save you considerably when it comes to energy costs. Determine if the energy savings will offset the cost of a new appliance. In addition, tax credits may be available on energy-efficient units.

Features/Performance - As technology advances, appliances have more and more features and can do more things. Putting cost aside, purchasing a new appliance might be the right choice simply because it improves your quality of life.

If the decision is to purchase a new appliance, remember that quality products tend to last longer, and that proper care will help prevent problems and reduce the need for repairs.

According to the National Association of Realtors (NAR), sales of existing single-family homes, townhomes, condominiums and co-ops jumped 9.4 percent in September, with first-time buyers driving much of the activity. Existing-home sales have increased during five of the past six months, and sales activity is now at the highest level in more than two years.

The NAR 2009 Profile of Home Buyers and Sellers indicates that first-time homebuyers accounted for more than 45 percent of home sales during the past year. NAR President Charles McMillan said that "potential first-time buyers can take heart in that affordability conditions this year are the highest on record dating back to 1970." Lawrence Yun, NAR chief economist, adds that first-time buyers free up many other sellers looking to trade up into a larger home, which benefits the overall market.

Click here to learn more about the benefits of owning a home. HomesByRobandJeannie.com