Good news for
everyone, the United States Congress has approve new legislation
that extends the $8.000 first time buyer credit until April
30th. The new legislation also expands the credit to buyers
purchasing a home before April 30th. 2010, this credit is in the
amount of $6,500 .
Bringing the Dream of Homeownership
Within Reach
As part of its plan to stimulate the U.S. housing market and
address the economic challenges facing our nation, Congress has
passed new legislation that:
Extends the First-Time Home Buyer Tax Credit of up to $8,000 to
first-time home buyers until April 30, 2010.
Expands the credit to grant up to $6,500 credit to current home
owners purchasing a new or existing home between November 7,
2009 and April 30, 2010.
Here is more information about how the Extended Home Buyer Tax
Credit can help prospective home buyers become part of the
American dream.
Who Qualifies for the Extended Credit?
1.) First-time home buyers who purchase homes between November
7, 2009 and April 30, 2010.
2.) Current home owners purchasing a home between November 7,
2009 and April 30, 2010, who have used the home being sold or
vacated as a principal residence for five consecutive years
within the last eight.
To qualify as a “first-time home buyer” the purchaser or his/her
spouse may not have owned a residence during the three years
prior to the purchase.
If you or your client purchased a home between January 1, 2009
and November 6, 2009, please see:
2009 First-Time Home Buyer Tax Credit.
Which Properties Are Eligible?
The Extended Home Buyer Tax Credit may be applied to primary
residences, including: single-family homes, condos, townhomes,
and co-ops.
How Much Is Available?
The maximum allowable credit for first-time home buyers
is $8,000.
The maximum allowable credit for current homeowners is
$6,500.
How is a Buyer's Credit Amount
Determined?
Each home buyer’s tax credit is determined by tow
additional factors:
1.) The price of the home.
2.) The buyer's income.
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Price
Under the Extended Home Buyer Tax Credit, credit may only be
awarded on homes purchased for $800,000 or less.
Buyer Income
Under the Extended Home Buyer Tax Credit, which is effective on
November 7, 2009, single buyers with incomes up to $125,000 and
married couples with incomes up to $225,000—may receive the
maximum tax credit.
These income limits have changed from the 2009 First-Time Home
Buyer Tax Credit limits. If you or your client purchased a home
between January 1, 2009 and November 6, 2009, please see
2009 First-Time Home Buyer Tax Credit.
If the Buyer(s)’ Income Exceeds These
Limits, Can He/She Still Get a Credit?
Yes, some buyers may still be eligible for the credit.
The credit decreases for buyers who earn between $125,000 and
$145,000 for single buyers and between $225,000 and $245,000 for
home buyers filing jointly. The amount of the tax credit
decreases as his/her income approaches the maximum limit. Home
buyers earning more than the maximum qualifying income—over
$145,000 for singles and over $245,000 for couples are not
eligible for the credit.
Can a Buyer Still Qualify If He/She
Closes After April 30, 2010?
Under the Extended Home Buyer Tax Credit, as long as a written
binding contract to purchase is in effect on April 30, 2010, the
purchaser will have until July 1, 2010 to close.
Will the Tax Credit Need to Be Repaid?
No. The buyer does not need to repay the tax credit, if he/she
occupies the home for three years or more. However, if the
property is sold during this three-year period, the full amount
credit will be recouped on the sale.
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