My contacts at Gracy Title of South Austin just shared some great news. Granted this is something we have thought was in the works, but the powers that be had not announced anything until now. The program may be extended as it is today or it may have some modifications, that is yet to be decided. So if your unsure about waiting, the time to buy a home is now. In order to qualify for the tax credit you must: make no more than $75K a year, be a first time home buyer (if you have not owned a home in three years you will qualify as first time buyer in this program), and be ready to buy now. You must be able to close on the home sale before December 1st 2009. 

Senate likely to extend homebuyers' tax credit

October 28, 2009 8:36 pm

Washington (CNN) -- Senate leaders have reached a tentative deal to extend the first-time homebuyers' tax credit that was originally passed earlier this year as part of the stimulus bill, Republican and Democratic sources told CNN on Wednesday.

The agreement would extend and expand the credit to include current homeowners who want to move, according to the sources.

The original credit in the stimulus bill is set to expire at the end of November and offers a tax credit of $8,000 to first-time homebuyers.

Senate sources told CNN they have tentatively agreed to extend that $8,000 credit for first-time buyers until the end of April. In addition, they are adding a $6,500 credit for some current homeowners who buy a new residence by then.

To qualify, current homeowners must have lived in their primary residence for five continuous years.

Senators have not agreed on how the tentative deal would come up for a vote, but sources from both parties said they are considering adding the housing credit to a bill that would extend unemployment benefits.

House Speaker Nancy Pelosi has indicated she also is interested in extending the homeowner credit, but House leaders have yet to endorse any one bill.