Well, we can’t call it the “$8000 First Time Home Buyer tax credit” anymore, but it’s been extended till April 30th 2010 and expanded to include current home owners looking to buy again! You don’t have to close by April 30th, just have a binding contract by that date and close by June 30th, 2010.
First Time home buyers can qualify up to $8000 if they:
- haven’t owned a home in the last three years
- make less than $125,000 individually or $225,000 as a couple (you may qualify for part of the credit if you make more)
- buy a primary residence that costs $800,000 or less
Current home owners can qualify up to $6500 if they:
- lived in their primary residence for five concurrent years out of the past eight
- meet the same income thresholds as first-time buyers
Military Service Members:
- Members of the U.S. armed forces, military intelligence, or foreign service on qualified extended duty get an extra year to take either credit. And if you or your spouse has been deployed overseas for 90 days or more in 2008 or 2009, you have until April 30, 2011 to claim the tax credit.
- You’ll need to stay in your new home as your primary residence for three years.
- You can’t buy your home from a family member.
- If your spouse has owned a home before, you will qualify for the $6500 credit.
- Many members of congress say this the LAST tax credit for home buyers we will see in a long time.
The National Association of Realtors says first-time buyers accounted for more than 45 percent of home sales in the past year. If we see those kinds of numbers for 2010, I believe we could really see a huge impact on the market and possibly work towards a speedy recovery.