The President has signed and it's official! Home Buyer Tax Credit Extended!

By
Services for Real Estate Pros

I as well as many others have been waiting - impatiently -  to see if the home buyer tax credit would be extended.  With great pleasure I am happy to announce:

 

The home buyer tax credit extension is now a done deal!  This isn't just an extension of the first time buyer tax credit, it is also a tax credit for qualified current home owners!

This new bill extends unemployment benefits for over a million Americans ( which is at a 29 year high) and extends the first time buyer tax credit of up to $8,000 on transactions through April 30, 2010.  Find your home and place an offer by April 30, close the transaction by June 30th and you get up to $8,000 in tax credit!  The income restrictions have been loosened too!

For current homeowners there is a $6,500 tax credit for qualified parties!  You must have owned your home for 5 years or lived in the home you owned for 5 of the last 7 years and you may be eligible for the $6,500 tax credit!  There are income restrictions.

Some of the details:

 

Amounts:
- The first-buyer credit remains 10 percent of the cost of the home or $8000, whichever is less.
- The credit for existing homeowners is 10 percent of the value of the new home or $6500, whichever is less. (Limit of $800,000 purchase price)

Definitions:
- A first-time homebuyer cannot have owned a home during the past three years.
- Existing homeowners must have owned and lived in their current home five out of the preceding eight years.
- Only principal residences qualify. No second homes or investment properties.

Income limits:
- The measure raises the income limits for those claiming the credit to $125,000 a year for individuals and $225,000 for couples, up from $75,000 and $150,000 in the previous first-time buyer credit. After that, the value of the credit phases out.
- The cost of the new home cannot exceed $800,000.

Cost:
- Expanding the home buyers' credit will cost about $11 billion. The total cost of extending the first-time buyer credit and adding the existing owners' credit is $16.7 billion.

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For help with buying a home.

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You can find great local Milwaukee Wisconsin area real estateinformation on Localism.com April Hayden-Munson Realtor, Southeastern Wisconsin is a proud member of the ActiveRain Real Estate Network, a free online community to help real estate professionals grow their business. Serving Milwaukee, Waukesha, Washington counties and the surrounding area.

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Ambassador
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Richard Weisser
Richard Weisser Realty - Newnan, GA
Richard Weisser Retired Real Estate Professional

April...

This is great news. BTW I wanted to ask you about last Sunday's game but ... well ... you know, it was just weird!

Nov 06, 2009 06:07 AM #1
Rainmaker
245,408
April Hayden-Munson
Brookfield, WI
Brookfield Wisconsin Real Estate

Hi Richard!! YEs it is indeed good news, I am sure many people will benefit from the tax credits!

Nov 06, 2009 07:38 AM #2
Ambassador
1,280,813
Jason Crouch
Austin Texas Homes, LLC - Austin, TX
Broker - Austin Texas Real Estate (512-796-7653)

April - I have some clients who are going to be very happy about this - they are moving into a larger home in January.

Nov 06, 2009 08:00 AM #3
Rainmaker
245,408
April Hayden-Munson
Brookfield, WI
Brookfield Wisconsin Real Estate

Jason, That's great to hear!  I have some sitting on the fence, I hope this helps push them over.  What a fantastic opportunity!!

Nov 06, 2009 08:15 AM #4
Rainmaker
1,945,732
Tom Braatz Waukesha County Real Estate 262-377-1459
Coldwell Banker - Oconomowoc, WI
Waukesha County Realtor Real Estate agent. SOLD!

April

This is really a good thing; and it now helps the existing buyer that wants to move up as well.

Nov 06, 2009 09:03 AM #5
Rainmaker
245,408
April Hayden-Munson
Brookfield, WI
Brookfield Wisconsin Real Estate

Tom - I think this may help with some who don't want to list right now because they perceive they will "lose" some of their equity.

Nov 06, 2009 09:11 AM #6
Rainmaker
3,250,381
Lou Ludwig
Ludwig & Associates - Boca Raton, FL
Designations Earned CRB, CRS, CIPS, GRI, SRES, TRC

April

The tax credit will help to sell homes.

Good luck and success.

Lou Ludwig

Nov 06, 2009 02:00 PM #7
Rainer
269,442
Steve Merson 512 412 1621
Keller Williams Realty - Austin, TX
CNE, e-PRO

Hi April,

Yes, at last an end to the uncertainty and great news for my first time home buyers. 

Steve

Nov 08, 2009 01:24 PM #8
Rainmaker
661,696
JL Boney, III
Coldwell Banker - Columbia, SC
Columbia, SC Real Estate

There are many people dancing from the rooftops because of this news, but I have mixed feelings about it. I guess it's good for those that can cash in on it.

Nov 09, 2009 11:42 PM #9
Anonymous
Brandon M.

I purchased my first home in October of 2007, do you know if my purchase applies to any of the tax credits?

Nov 11, 2009 05:17 AM #10
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April Hayden-Munson

Brookfield Wisconsin Real Estate
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