NOTE- I HAVE NOT SEEN FULL CONFIRMATION THAT ITS BEEN EXTENDED. I AM SIMPLY REPORTING THAT IT HAS BEEN AGREED UPON. DO NOT TAKE THIS AS FACT UNTIL THE ACTUAL BILL IS PASSED. OTHER THINGS ARE GROUPED IN THIS PACKAGE THAT HAVE NOT BEEN AGREED UPON SO IT IS NOT TECHNICALLY OFFICIAL.
According to the Associated Press, It's looking good for the Tax Credit. It's mixed in with a bunch of other things that are still being haggled over, but it sounds like we are going to be moving forward with this. So the new details would be.....
Associated Press Article - CLICK HERE
The tax credit will be slightly expanded for its original format to include buyers who have lived in their current residence for at least 5 years. These buyers would be given a reduced amount of $6500.00. Eligibility has not been released, but 5 years might be the only requirement.
The Original $8000.00 will be extended, but it is ending in a slightly different format. Instead of having to settle by a certain time (currently Nov. 30) you have to have a ratified (signed by both parties) contract by the end of April. You will then have until the end of June to settle. This is probably to avoid the time crunch that is happening right now. Loans can only close so fast. The 30 day buffer from contract to settlement will surely reduce the stress level of the underwriting departments, FHA, USDA, and other associated agencies.
Here is a recap of the original. The standards for qualification for first time buyers will LIKELY remain the same.
TAX CREDIT ELIGIBILITY
1.) Amount of Credit - You will be credited the lesser of 10% of the cost of the home or $8000.00 dollars. If you buy a house that costs 70,000 your credit will be 7000 for example.
2.) Eligible Property - Any single family residence (including condos, co-ops, townhouses) that will be used as a principal residence
3.) Refundable -Yes. Reduces or can Eliminate income tax liability for the year of the purchase. Any unused amount of tax credit is refunded to the purchaser.
4.) Income Limit - Yes. Full amount of credit available for individuals with adjusted gross income of no more than 75,000 or 150,000 on a joint return. Phases out above those caps (95,000 and 170,000 respectively).
5.) First time Home-buyer Only - Yes. Purchaser (and purchasers spouse) may not have owned a principal residence in 3 years previous to purchase.
6.) Repayment - No repayment for purchases on or after January 1, 2009 and before December 1st, 2009.
7.) Recapture - If home is sold within three years of purchase, entire amount of credit is recaptured on sale. Applies only to homes purchased in 2009.
8.) Termination - December 1, 2009 - Now is the time to buy people (proposed to be the end of April)
So if you were dragging your feet, you might have a little more time. Save your Christmas money and start looking. Winter is traditionally slower so there should be a bit more inventory coming on the market.
Again I don't believe this has officially been passed, but supposedly tomorrow will be the day.
I will update when everything is fully signed sealed and delivered.
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