On November 6, 2009 President Obama signed the bill that extends the tax credit for first-time homebuyers(FTHBs) through June 30, 2010. Here is an overview:
First-time Homebuyers: Buyers who have not owned a home within the last three years may be elibible for the tax credit. The credit is 10% of the purchase price of the home, maximum credit of $8,000.
Current Owners: Now the tax credit program gives current owners an incentive. This incentive gives a tax credit of up to $6,500 for qualified purchases who have owned and occupied a primary residence for a period of five years during the last eight years.
To qualify for the credit, all contracts need to be in effect no later than April 30, 2010 and and close no later than June 30, 2010.
Income caps have been increased. Single tax filers who earn up to $125,000 are eligible for the total credit. Over that cap can receive a partial credit. Single filers who earn $145,000 and above are ineligible. Joint filers who earn up to $225,000 are eligible for the total credit. Those who earn more can receive a partial credit. Joint filers who earn $245,000 and above are ineligible.
Maximum purchase price of a home is $800,000.
Of course (it is the government) there are additional restrictions. If you plan on taking advantage of the tax credit be sure to review all the restrictions before purchasing a home. And of course, call me so we can find you the right home!