Home Buyer Tax Credit...Not Only Extended, But Expanded, Too!

Many home buyers have been on pins and needles awaiting the decision on the tax credit extension. 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  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 homebuyers 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."

Keisha Hosea is a local Market Expert and Realtor in Chino Hills, California with Keller Williams Realty, She is the Team Director and CEO of KASI Homes. The KASI Homes Team helps buyers and sellers with conventional sales, short sales and bank owned homes throughout the Inland Empire in cities including, but not limited to, Chino Hills, Chino, Ontario, Pomona, Diamond Bar, Corona and more. She has been a local resident for over 22 years and enjoys volunteering with the City of Chino Hills in her spare time. You may call her direct at (909) 261-6377 for further questions on this information or any other real estate advice.