Congress just passed an expanded version of the $8,000 first-time home buyer tax credit that was supposed to expire on November 30^th.  Although the tax credit remains at $8,000 for home buyers that have not owned a home in the last three years, it has been expanded to include a $6,500 tax credit for home buyers that have lived in their current primary residence for at least five consecutive years out of the past eight years.  Under the old rules, move-up home buyers did not qualify.

Here is an example of how the new rules about existing homeowners apply: 
Todd purchased a home in 2004, and lived there for the past 5 years as his primary home.  If Todd decides to buy a new primary residence today, he would qualify for the $6,500 tax credit based on the fact that he lived in the same residence as his primary home for at least five consecutive years out of the last eight.

 The tax credit applies to homes purchased for less than $800,000 before May 1, 2010.  The purchase contract must be fully agreed upon and signed by May 1^st and the transaction must close by June 30^th, 2010. 

The income limitations have gone up with the new version - for single tax payers previously the income limitation was $75,000 and that was increased to $125,000 under the new rules.  For married tax payers, the income limitation went up from $150,000 to $225,000.  With the new higher limits, more people will qualify for the credit, especially in areas with higher costs of living.

This is terrific news for buyers in Riverside and Corona and all throughout the Inland Empire.  Take advantage of this tax credit as well as very low interest rates and housing prices to buy your first home or move up to a home that better meets your needs.

If you would like to learn more about selling or buying real estate in Riverside or Corona  CA,  contact me at  vicki@pedersen-team.com      Click here to visit my website.