Congress Extends/Expands 1st Time Buyer Tax Credit

Last week the Senate voted to extend the first time buyer tax credit. Today the bill passed Congress. It is expected that President Obama will sign the bill in the next day or so.

The new bill will extend the $8,000 1st time buyer tax credit to include all properties under agreement by April 30th as long as they close by July 1st 2010.  The income limits have been expanded as well. Single people can now make up to $125,000 while married couples can earn up to $225,000 and still take advantage of the tax credit.

This time there is also a provision for move up buyers. If you have been in your house for at least 5 years, you can sell your present primary residence, purchase a new house and receive a tax credit of $6,500.

Here’s a comparison chart showing the difference between the current 1st Time Buyer Tax Credit rules and the new regulation.