The Home Buyer's Tax Credit recently expired for first time home buyer's but it is still available uniformed  services of the U.S military, members of the Foreign Service of the U.S., or employees of the intelligence community who are actively serving outside of the U.S. on official extended duty.

The Homebuyer's Tax Credit of up to $8,000 for first-time buyers and up to $6,500 for certain repeat buyers has been extended one year for the above groups.  The rules are that the buyer must be under contract by April 30, 2011 and closed by June 30, 2011.

This can be a very attractive deal for our military when you combine it with the VA on qualified military personnel to purchase certain homes in certain areas with no money down and no private mortgage insurance.

The rules are little different for the military then they were for civilians.  The rules for first time home buyers is the same in that you can not have owned a home in the last 3 years, but the maximum price for a home can be $800,000.  If you buy something for more then that price it will make the tax credit invalid.  The credit phases out for individual taxpayers with modified adjusted gross income (MAGI) between $125,000 and $145,000 or between $225,000 and $245,000 for joint filers.

The $6,500 dollar credit to current homebuyers, the military personnel must have lived in their home for 5 out of the last 8 years along with the salary and home cost as if you were a first time homebuyer.  

Thank you to everyone in the military!