Homebuyer Tax Credit Extension and Changes

Today, in a vote of 403-12, the House passed a bill that the Senate had already passed that extends the Homebuyer Tax Credit and also makes some changes to the existing tax credit. Now, before I go ANY further, I need to throw out a disclaimer that President Obama still needs to sign this into law to make it official. Although that should just be a formality, it is in fact not law until he signs it. So, this is just to inform of what the bill is and what some of the changes are.

Ready? Here we go:

The proposed new law will extend the current first time buyer tax credit from November 30, 2009 to April 30, 2010. However, it only has to be under contract by April 30, 2010. It actually has to close by July 1, 2010. This will help out with short sales tremendously!

Also, current homeowners are now eligible for a tax credit upon purchasing a home, up to $6,500. The catch here is that existing homeowners have to have lived in their home for 5 of the last 8 years in order to qualify.

The proposed new law also extends the income limits. Under the old credit, maximum income for the full credit was $150,000 for a married couple. Under the new law, the maximum would be raised to $225,000 for a married couple. The maximum purchase price on a home is $800,000.

There is also a new anti-fraud rule where the purchaser must attach documentation of the purchase to the tax return.

First time home buyers are still considered someone who has not owned a home in at least 3 years.

If you have any questions, please feel free to call me and I will do my best to answer any questions that you may have. My cell is 574-370-8156.