First Time Homebuyer Extension
The president has signed the bill to extend and expand the first time homebuyer tax credit.
Here are some changes from the existing credit and the new one starting at the date of enactment (presumably December 1, 2009)
The first time buyer credit amount is currently $8,000 and will stay the same amount with the extend version.
In the current bill the first time buyer may not have had an interest in a principal residence for three years prior to purchase. This is also staying the same with the extension.
Currently there is no credit given to current homeowners. In the new bill starting current homeowners can earn up to $6500.
The definition of eligibility for current homeowners is they must have used the home sold or being sold as a principal residence consecutively for 5 of the previous 8 years.
End dates for the credit have changed. The current bill ends November 30, 2009. The extension will cut offers off April 30th and must close before July 1, 2010.
Income limits currently are $75,000 for a single person and $150,000 for a married couple. Starting December 1 the limit for singles is $125,000 and $225,000 for married couples.
There are currently no limitations on the cost of the purchased home in the expansion there will be a limit of $800,000.
These are just a few of the changes. For more information you can check out the National Association of Realtors website: www.realtor.org
