More on the Tax Credit Extension

By
Mortgage and Lending with First Community Bank NMLS #405459

Good morning!  Just wanted to touch base with all of you about the extension of the tax credit for first time home buyers.

It seems that Senators have come to a decision to extend the tax credit for first time homebuyers through the end of April 2010!  This is great news!  Builders that are hurrying to get homes finished have a little breathing room now.  Also, it helps those people who were on the fence about buying a home to take advantage.

Also, Senators have decided that they will extend the tax credit to those who have owned a home for at least five years and want to purchase another primary residence.  The tax credit for this program will be $6,500 rather than the $8,000 allowed to first time home buyers.  The income limits for this program will be increased to $125,000 and $225,000 rather than the $75,000 and $150,000 for the first time homebuyers.  This is a great program to help stimulate the economy as well!  Families wanting to upgrade into a larger home can now do so!

I will keep you posted!

 

 

Comments (3)

Mario Blautzik
TBA - Rockville, MD

It's still not a done deal.

Oct 29, 2009 03:37 AM
Darla Maddalone
Bend Oregon Homes Online-Principal Broker, SFR, CSP - Bend, OR

As Mario notes, it's not a done deal yet.  Also, your info. on the extension is a bit different than what I have read.

Cut & paste from "Daily Real Estate News" - Oc. 28, 2009

Senate Dems on Board with Credit Extension
Senate Banking Committee Chairman Chris Dodd (D-Conn.) says Senate Democrats have agreed to extend the first-time home buyer tax credit. The latest version extends the program to home sales signed - not closed - by April 30. Purchasers would have another 60 days to close the sale. The credit will also be expanded to include so-called step-up buyers who have lived in their current home for at least five years.

The credit would be cut nearly 10 percent to a $7,290 cap. Income eligibility for first-time home buyers would stay the same, but it would rise for step-up buyers to $125,000 for individuals and $250,000 for couples.

Source: Bloomberg News, Dawn Kopecki and Ryan Donmoyer (10/27/2009)

I would think we'll see something in the next week or so on the extnesion.

 

Oct 29, 2009 03:42 AM
Jeff Boyer
First Community Bank - Helena, MT

True.  Thanks for the comment.

Oct 29, 2009 03:43 AM