The First Time Home Buyer Tax Credit is Extended!
The $8,000 first time home buyer tax credit that was scheduled to be canceled as of November 30th has been extended, which is absolutely wonderful news for all of those potential home buyers who weren’t able to find their new homes before the deadline. The new credit will be in effect until April 30, 2010. Please note that home buyers will need to be in contract by that date, but will have up until July 1, 2010 to close the escrow (that’s when you actually own the home). And, the new credit is even better than the previous one for the following reasons:
…The income limits have been raised so that now more people will qualify for the credit. Previously, if you were a single person, you could only earn up to $75,000 and, as a married couple you could only earn $150,000. Now, single people will still qualify if they make up to $125,000 and married couples will be able to receive it if they make up to $225,000. And, those earning over these amounts may still qualify a credit, but for a lesser amount.
…Previously, the credit was only available to first time home buyers, which is anyone who hasn’t purchased or owned a home in California for the last 3 years. Now, move up buyers can qualify for a credit, too! If you are selling and/or have sold your home and have used it as your principal residence for 5 of the last 8 years, you will be able to purchase your new home and qualify for a $6,500 tax credit. It’s not quite as good as the first time buyer’s $8,000, but it will still be a big help.
I believe this is great news for everyone…Home sellers will have a better chance of getting their homes sold and home buyers will get a little extra help to make the home more affordable. This credit, plus the incredibly low interest rates, should really give the economy a further spurt of growth.
Kathy Wall (415) 608-4168
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2 Responses to “The First Time Home Buyer Tax Credit is Extended!”
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Great news for first time buyers as well as move up buyers
Larry
It’s all good, Kathy.
We need to contact our customers who qualify for the move up program and see if they are aware of it, explain how it would benefit them and if they are interested in moving up.
Brian