So you have heard about the $8,000 First time homebuyer credit, well now senators have agreed to extend the $8,000 credit originally set to end on November 30! Once the Official vote on the bill takes place, it will go to the House of Representatives, which strongly supports the extension. There has been signals of strong support from the Obama administration as well.
Here is the good news for those who do not qualify as first time home buyers, the new plan would offer a $6,500 credit for repeat or move-up homebuyers who have lived in their primary residence for five years or more! The tax credits would be available to buyers who sign purchase agreements on a new or existing primary residence between December 1, 2009 and April 30, 2010. Buyers would have until June 30 to close on their new homes.
There are some stipulations though, there is a $800,000 Home Purchase Limit, and income limits for all buyers would rise to $125,000 per year for individuals and $225,000 for married couples. Under the current program, the limits are $75,000 and $150,000.
The first-time homebuyer credit is also available to those who have not owned a home in the previous three years. The credit does not have to be repaid unless the home is sold or ceases to be the primary residence within three years.
Per the Treasury Department, 13.6 Billion dollars have been allocated for this program and more than 1.2 million buyers have already taken advantage by using 8.5 billion so far.
THIS LEGISLATION HAS NOT YET PASSED, and please do not take this as tax or legal advice, but I will be sure to keep you informed as it moves through Congress toward approval. We are here for all your real estate needs, call Lisa or Nick today should a buy or sale be in your future!