Senate and House Pass Home Buyer Tax Credit Extension

Earlier yesterday the House of Representatives passed legislation to extend and expand the $8,000 first-time homebuyer tax credit, which was approved by the Senate this week.  The legislation will be sent to the President for his signature today and signed into law.

Under the legislation, homebuyers will qualify for the tax credit until April 30, 2009 (as long as they have entered a binding contract), and have an additional 2 months (until June 30, 2009) to close the transaction.  Borrower income limits have also been increased to $125,000 for individuals and $225,000 for couples (up from $75,000 and $150,000 respectively under the current program).  The legislation also includes a tax credit not exceeding $6,500 for move up buyers who have owned their current homes for at least 5 years.

The Tax Credit Comparison Chart is available from NAR explaining the difference between the old tax credit and the newly passed tax credit extension. NAR has also made available a Tax Credit FAQ regarding the new tax credit extension to answer some questions you may have.