The Senate has given the final approval passing the extension on the first-time buyer tax credit.  The House of Representatives vote was overwhelming as they passed the extension and added an expansion of the homebuyer tax credit.  And, President Obama has signed the final approval, putting it into act.

The first-time homebuyer tax credit will be extended through April 30, 2010.  Buyers will have until the end of June 2010 to close on their property.  The new legislation also increased the income limit for couples with income up to $225,000.  That is almost a $55,000 increase above what its current level.

Now, for the first time, buyers who already own a home are eligible for a $6,500 tax credit (known as a repeat buyer's tax credit).  The credit will be available to existing homeowners who have lived in their primary residence for five consecutive years out of an eight year homeownership.  There is an eligibility limit of up to $800,000 for the price of the home.

Both credits are only available for primary residences.  Secondary homes and investment homes are not eligible for the tax credit.  The legislation goes into effect December 1 and is not retroactive.

Although there is a lot of concern about the $16.7 billion cost to keep stimulating real estate sales, it is still a popular plan for the moment and many homebuyers are taking advantage of it while it lasts.

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Known for the Clients She Keeps ~ Realtor® Vicki Lind

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