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Did You Miss The Boat on the First Time Home Buyers Tax Credit? Great News...It's Not Too Late!!!

November 11th, 2009 4:33 PM

Good news for those first time homebuyers who thought they had missed the boat on the $8000 first time homebuyers tax credit. President Obama signed the Unemployment Insurance Bill, which contains the Homebuyer Tax Credit extension and expansion.

The bill extends the present $8,000 tax credit for first-time home buyers through April 30, 2010. Current homeowners are now eligible for a $6,500 tax credit through April 30, provided they have lived in the home they are selling, or have sold, as principal residence for five consecutive years in the past eight years. If potential home buyers have a binding contract on or before that date, they will have until July 1, 2010 to close the transaction.

Income limits for eligible home buyers are expanded to $125,000 for single buyers and $225,000 for couples. The purchase price of the home cannot exceed $800,000. To help guard against fraud, buyers are required to attach documentation of purchase to their tax return such as the HUD statement. Remember to put that HUD statement from the closing in a safe place.

Click Here to view detailed chart explaining the above modifications to the tax credit. You may also view FAQs by clicking here.

The approval of this package will allow our local housing market to continue to stabilize and improve and in turn will hopefully help the economy rebound! Stay tuned for more updates...

Posted by Barbara Dees-Earley on November 11th, 2009 4:33 PMPost a Comment (1)

This is great news for me. I have wanted to buy a house but was unable to come up with a down payment before Dec 1. This gives me more time. I also want to be able to take advantage of the low interest rates right now.

Posted by Anastasia on November 11th, 2009 4:50 PM