Tax Credit Extension & Expansion is Approved!

 President Obama has approved a bill for the Housing Tax Credit Expansion and Extension. Here´s what it means:

The $8,000 First-Time Homebuyer Tax Credit is Extended!

·        Now, qualified first-time home buyers would receive their $8000 tax credit if they sign a purchase contract by April 30, 2010 and close by June 30, 2010.

·        The home purchased must be their primary residence

·        Buyer cannot have owned a home during the past three years

·        Tax credit is up to 10% of the home value (not to exceed $8,000)

·        Annual income caps to qualify for the tax credit have increased ($125K for single filers / $225K for joint filers). Partial tax credit can be granted for incomes up to $145K for single filers / $245K for joint filers.

·         

PLUS New $6,500 Tax Credit for Current Home Owners Purchasing a Primary Residence

·        Eligible home buyers must have lived in their current home for 5 consecutive years of the past 8 years.

·        The new home does not have to cost more than the old home.

·        Eligible for homes with purchase agreements written by April 30, 2010 and that close between November 6, 2009 and June 30, 2010