Extension and Modification of First-Time Homebuyer Tax Credit

Here are the highlights for the newly extended First-Time Homebuyer Tax Credit per H.R. 3548, dated November 4, 2009:

• Extended to May 1, 2010
• Must be under contract before May1, 2010 and the purchase must be completed before July 1, 2010
• Homebuyers that have occupied a principal residence for any 5-consecutive-year period during the 8-year period ending ont he date of the purchase of a subsequent principal residence, such individuals will be treated as a first-time homebuyer.
• Long-time residents of same principal residence will be eligible for $6,500 if single or married filing jointly, if married and filing separately $3,250.
• Higher income limits to $150,000 for a single person and $225,000 for married couples.
• Maximum purchase price of a principal residence is $800,000.

Extension of First-Time Homebuyer Credit for Individuals On Qualified Official Extended Duty Outside the United States

Qualified Official Extended Duty applies to: a member of the uniformed service; a member of the Foreign Service of the United States, or; an employee of the intelligence community.

• must have served outside the United States for at least 90 days during the period beginning December 31, 2008, and ending before May 1, 2010, and, if married, such individual's spouse.
• must be under contract by May 1, 2011 and have purchased by July 1, 2011.

Provisions to enhance the Administration of the First-Time Homebuyer Tax Credit

• Minimum age is 18 years as of the date of purchase.
  • If the taxpayer is married, the taxpayer shall be treated as meeting the age requirement if the taxpayer's spouse meets the age requirement.
• Must include the settlement statement used to complete the purchase. (This can be obtained through your loan officer or through the escrow company.)
• Waiver of recapture rule for any purchase of a principal residence after December 31, 2008.

I hope this has been helpful. Please contact me if you have additional questions.