Current home owners have also been anxious to see if they would be given the opportunity to have a piece of this stimulus package. Looks like the wait is over. The Senate's recent vote resulted in a 98-0 win and today it was passed in the house. The bill must now be signed by the President.
The First-time home buyers tax credit of up to $8,000 was due to expire on December 1, 2009 but will now be extended through April 30, 2010. The newly backed program will also expand the credit to include existing home owners. The tax credit expansion is applicable to current homeowners who are buying a new primary residence if they owned their home for five consecutive years in the previous eight. Such homeowners will be able to apply for tax credits of up to $6,500 when they purchase their next home.
To qualify, buyers will have to sign a purchase agreement by April 30, 2010 and close by June 30, 2010. The maximum purchase price on a home will be $800,000. Income limitations are $125,000 for single tax payers and $225,000 for joint filers. Both credits are available only for primary residences, not second homes or investment properties.
Let's not forget those who have committed themselves to our Country. The tax credit is also set to be extended for another year for military personnel serving outside of the United States until June 30, 2011.
According to the National Association of Realtors (NAR), about 1.4 million first-time home buyers have qualified for the program. It is further estimated that 350,000 of these buyers would not have otherwise purchased.
To compare the old tax credit to the newly extended and expanded tax credit go to http://www.realtor.org/about_nar/presidents_report/_podcast_archive/mcmillan_taxcreditextended_20091105 and click on the link for "Compare the differences."
