The Tax Credit Extension is here. Save the date: April 30th, 2010.

The most common question over the past few weeks has been, "Do you know if they (the government) is going to be extending the 'homebuyers tax credit' soon?" Many of my buyers that have been looking have known they were running out of time with the current incentive we had.

Well good news is here! On Friday November 6th, President Obama signed the Worker, Homeownership, and Business Assistance Act into law. This legislation includes language that significantly expands the popular first-time home buyer tax credit that was enacted this past February. This new law also has a great new add to the existing law, but adding a repeat home buyer tax credit.

Allow me to provide an update to the new law with a breakdown of the two new incentives of this law:

$8,000 First-time Home Buyer Tax Credit Update

• The $8,000 tax credit is for first-time homebuyers only. For the tax credit program, the IRS defines a first-time home buyer as someone who has not owned a principal residence during the three-year period prior to the purchase.
• The tax credit does not have to be repaid.
• The tax credit is equal to 10% of the home’s purchase price up to a maximum of $8,000.
• The tax credit applies only to homes priced at $800,000 or less.
• The tax credit applies to sales occurring before April 30th, 2010. However, in cases where a binding sales contract is signed by April 30th,2010, a home purchase completed by June 30th, 2010 will qualify.
• Income limits have also increased for single taxpayers and married couples filing jointly. Contact me for more information.

$6,500 Move-Up / Repeat Home Buyer Tax Credit Update

• To be eligible to claim the tax credit, buyers must have owned and lived in their previous home for five of the consecutive years out of the last eight years.
• The tax credit does not have to be repaid.
• The tax credit is equal to 10% of the home’s purchase price up to a maximum of $6,500.
• The tax credit applies only to homes priced at $800,000 or less.
• The tax credit applies to sales occurring before April 30th, 2010. However, in cases where a binding sales contract is signed by April 30th,2010, a home purchase completed by June 30th, 2010 will qualify.
• Single taxpayers with incomes up to $125,000 and married couples with incomes up to $225,000 qualify for the full tax credit.

Time will pass faster than you know it. If you have any further question regarding the changes to the tax credit, please feel free to call.

If you are thinking of buying or ‘Moving-up” and wonder what your buying power may be, please contact me today at BHusen@Sunsetmortgageco.com

Thanks for visiting.

Bryan