First Time Homebuyer Tax Credit Could Be Extended

It appears that the $8000 Tax Credit for first time homebuyers will be extended.  Set to expire on Dec. 1, 2009, Senate lawmakers, with White House support, seem to have reached an agreement not only to extend the tax credit, but to broaden its scope. 

The National Association of Realtors and the National Association of Homebuilders have been lobbying to extend the tax credit, which is also endorsed by the Treasury Secretary and HUD Secretary. 

As currently proposed, the $8000 tax credit would be extended for contracts written through April 2010, but buyers would still have until June 30, 2010 to actually close on the property. 

Two major proposed changes to the tax credit would allow existing homeowners to be eligible for a tax credit, and it proposes to allow more affluent buyers access to the tax credit.  Previously homebuyers were only eligible for the tax credit if they had not owned a primary residence in the past three years.  Now, it looks like current homeowners who have been in their primary residence at least five years would be able to benefit from a $6500 tax credit on the purchase of their next home.  This is meant to encourage move-up buyers.  Income restrictions would increase from $75,000 a year to $125,000 for single buyers and would increase from $150,000 to $225,000 for married buyers.   

If you or someone you know is considering a move, watch for updates on this blog.