Homebuyer Tax Credit Extended and Expanded to Existing Homeowners

The extension of the First Time Homebuyer Tax Credit is official.  The bill extends the deadlines for first time homebuyers to be eligible for up to $8,000 as a tax credit when purchasing their first home.  The new bill also includes some provisions for current homeowners to receive up to $6500 when they purchase a primary residence.

First Time Homebuyer Tax Credit At A Glance:

• First Time Homebuyers are eligible for a tax credit of up to $8000 when they purchase a home by June 30, 2010. 
• The home must be under contract by April 30, 2010 and close no later than June 30, 2010.
• A First Time Buyer is anyone who has not owned a primary residence in at least three years.
• Income limits for the tax credit for homes purchased after November 6 have been increased to $125,000 for single taxpayers and $225,000 for married couples.
• The tax credit is only good for homes up to $800,000.

Move-up or Repeat Homebuyer Tax Credit At A Glance:

• To be elgible for the tax credit, buyers must have occupied their home for at least five of the past eight years.
• The home must be under contract by April 30, 2010 and close no later than June 30, 2010.
• The new home must be a primary residence for the buyer.
• Income limits for the tax credit are $125,000 for single buyers and $225,000 for married couples.
• The tax credit is only good for homes up to $800,000.
• Repeat buyers do not have to buy a home that is more expensive than their previous home.
• Buyers cannot purchase a home from family members.
• Buyers can purchase new construction or contract to have a home built, but it must be under contract and close by the qualifying deadlines above.

The National Association of Homebuilders has an excellent FAQ sheet for both programs at
http://www.federalhousingtaxcredit.com/