Anyone that has been in the market for a new home over the last year has surely seen information on the $8,000 tax credit for first time home buyers. This tax credit was due to expire on November 30th and closings must have happened on or before November 30th to qualify. Unfortunately, this deadline put many home buyers that were still searching for their perfect home, or in the middle of a long and complicated contract out of reach of their $8,000. The tax credit is now due to be extended! The bill has passed the senate, house and should now just be waiting for President Obama's approval, however he has stated that he will sign. Great news for first time home buyers. BUT, a great new addition to this bill is that there has been a REPEAT BUYER tax credit of $6,500 added! Here are the details:
The Extended and Expanded Tax Credit agreement includes the following provisions:
Who: First-time homebuyers -- same definition as current law
Who: Repeat purchasers. Must have used previous home as a principal residence for 5 of the 8 previous years.
Income Limits: $125,000 for single filers/$225,000 for joint filers. Same for both first-time and repeat/move-up buyers
Time Frame: December 1, 2009 to April 30, 2010
(also includes a 60 Day extension if binding contract is in place by April 30, 2010)
*Limitation on cost purchased home: $800,000
*Anti-fraud measures have been added.
So, whether you are a first time home buyer, OR a repeat buyer that fits the qualifications listed above, you may qualify for free money! Should you be interested in finding your next home, selling your existing home, or even just have any real estate questions, please feel free to contact me!
Steffani Martino, Realtor
Coldwell Banker Residential Real Estate