Details on the $8,000 First time homebuyer Tax extended and expanded

By
Real Estate Agent with Berkshire Hathaway HomeServices YSU Realty: (919) 645-2522

Lately the news about the extension of the $8,000 First Time Homebuyer Tax Credit and it's expanded reach to all home buyers is getting a lot of attention and questions.  President Obama has approved the Housing Tax Credit Expansion and Extension. I've gotten a few questions about it over the last few days so thought I'd set out the details of the bill.

$8,000 First-Time Homebuyer Tax Credit Extension


Under the American Recovery and Reinvestment Act of 2009, qualified first-time homebuyers may receive a tax credit up to $8,000. President Obama’s bill extends this program into 2010.


• Eligible for homes with purchase agreements signed by April 30, 2010, and closed by June 30, 2010

• Available to first-time homebuyers who have not owned a home during the past three years

• Credit amount up to 10% of the home’s value, not to exceed $8,000

• Buyers qualified for full tax credit are single taxpayers with incomes up to $125,000 and joint filers with incomes up to $225,000

Let's get it sold!


$6,500 Tax Credit For Current Home Owners


President Obama’s new bill also provides up to $6,500 tax credit to current home owners who purchase a new primary residence.  Eligible for homes with purchase agreements written by April 30, 2010, and that close between November 6, 2009 and June 30, 2010

• Qualified home buyers must have lived in their current home for 5 consecutive years of the last 8 years

• Maximum purchase price of the home is $800,000

• Single tax filers who earn up to $125,000 are eligible for the total credit amount. Partial credit can be granted for incomes up to $145,000.

• Joint filers who earn up to $225,000 are eligible for the total credit amount. Partial credit can be granted for incomes up to $245,000.

 

It's the $6,500 Tax Credit for Current Home Owners that's really news.  Right now with interest rates at an all time low, inventory is still healthy here in the Triangle but the competition (other listings) starts to dwindle during the holiday months leading up to the end of the year.  It will be interesting to watch what our market does in January. 

If you have questions or would like to find out more about the tax credits - let's chat...

 

Posted by

 Subscribe to Raleigh Homes Online's Blog

One Solid Rock!About the author:  Pamela is a Realtor in Raleigh NC with The St. Peter HomeSelling Team at Prudential YSU Realty serving the Raleigh NC (Triangle & Wake County) area.

"We are a team of passionate North Carolina Real Estate Brokers dedicated to connecting our clients to success in home buying and home selling in the Triangle." Pamela can be reached via email at Pamela@RaleighHomesOnline.com or by calling (919) 645-2522.

For all your Wake County real estate needs The St. Peter HomeSelling Team serves the following areas in Wake County; Raleigh, Cary, Apex, Morrisville, Holly Springs, Fuquay Varina, Garner, Wake Forest, Knightdale.

Find your Home in the Triangle, NCVisit me on Google+Let's connect on LinkedInJoin us on FaceBookfollow us on TwitterJoin us on PinterestWhat is My Triangle Home Worth?

close

Re-Blogged 1 time:

Re-Blogged By Re-Blogged At
  1. Kat DeLong 12/01/2009 11:35 AM
Topic:
ActiveRain Community
Location:
North Carolina Wake County
Groups:
North Carolina Real Estate
The Art Of Marketing You
Posts to Localism
Americas Relocation Home Services - Our Mission is to Connect Home Buyers & Sellers With Local Real Estate Professionals
Local Expert
Tags:
1st time home buyer tax credit

Spam prevention
Show All Comments
Rainer
104,911
Craig Richardson
National Realty - McLean, VA

Great information, thanks!  Hopefully this will have a big impact on the market.

Dec 01, 2009 07:42 AM #1
Ambassador
691,951
Lee & Pamela St. Peter
Berkshire Hathaway HomeServices YSU Realty: (919) 645-2522 - Raleigh, NC
Making Connections to Success in Real Estate

There's going to be an increase in real estate activity at the beginning of the year.  Remember that you have to have an executed purchase agreement by April 30th if you want to take advantage of the tax credits.  AND if you're looking to build you don't have a day to waste...

Dec 01, 2009 07:45 AM #2
Rainmaker
738,544
Troy Erickson
Diverse Solutions Realty www.ChandlerRealEstate.weebly.com - Chandler, AZ
Your Chandler, Ahwatukee, and East Valley Realtor

Lee & Pamela - I think the addition of the tax credit for current home buyers is a good thing.  We will just have to wait and see how much of an impact this will have in the market.

Dec 01, 2009 09:48 AM #3
Ambassador
677,228
Kat DeLong
LAKEVIEW REALTY, Lake Arrowhead. 909-273-4542 - Lake Arrowhead, CA
Realtor BRE#01235311, Lake Arrowhead Real Estate (

Pamela and Lee: Super post! I just re-blogged it and I know my clients will find it so helpful!

Dec 01, 2009 11:40 AM #4
Rainmaker
1,009,862
Bill Gassett
RE/MAX Executive Realty - Hopkinton, MA
Metrowest Massachusetts Real Estate

Pam  I hope the new change in the tax code brings more business your way:)

Dec 01, 2009 01:31 PM #5
Ambassador
2,192,189
Debe Maxwell, CRS
www.AtHomesCharlotte.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
Charlotte Homes for Sale - Charlotte Neighborhoods

Hi Pamela!  Great information for your consumer--hopefully the new incentive will be what we need for 2010 to be THE turn-around year.

Have a wonderful Wednesday...

 

Dec 01, 2009 02:37 PM #6
Ambassador
691,951
Lee & Pamela St. Peter
Berkshire Hathaway HomeServices YSU Realty: (919) 645-2522 - Raleigh, NC
Making Connections to Success in Real Estate

Bill & Deb, I was just reading this morning where more than 1 million households have used the the 1st time tax credit since it's inception.  I can't help but believe that it will continue to attract first time home buyers (especially with rates where they are) and NOW with the extended credit attract  even more people in the market. 

Troy I hope it helps your Phoenix market too.

thanks Kat for the re-blog :)

 

Dec 01, 2009 10:49 PM #7
Ambassador
515,497
Stanton Homes
Stanton Homes - New Home Builder, with thousands of floor plans and almost unlimited customization available! - Raleigh, NC
Design/Build Custom Home Builder in North Carolina

Pam - great overview, easy to read. We're looking at starting a record number of new homes in January in order to meet the June closing date requirement.  Anyone looking to build should be making decisions on location and floor plan within the next 30 to 60 days! 

Dec 01, 2009 11:11 PM #8
Ambassador
691,951
Lee & Pamela St. Peter
Berkshire Hathaway HomeServices YSU Realty: (919) 645-2522 - Raleigh, NC
Making Connections to Success in Real Estate

Thanks Penny and you are so right!  Let's get the word out to people to start making those building plans!

Dec 02, 2009 12:38 AM #9
Show All Comments

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?

Ambassador
691,951

Lee & Pamela St. Peter

Making Connections to Success in Real Estate
Ask me a question
*
*
*
*
Spam prevention

Additional Information