TAX CREDIT EXTENDED

By
Mortgage and Lending with Lawrence Bland International

Excelent news! The US government has extended as well as expanded tax credits for home buyers - not just those buying for the first time either. Below are some of whats in the changes.

1. First time home buyers can now receive an $8,000 tax credit through April 30, 2010

2. Home buyers who have lived in their residences for five years may now receive a credit of $6,500

3. The tax credit is now available to individuals earning up to $125,000, or $250,000 for couples

4. $8000 tax credit for first-time homebuyers extended for buyers who sign a contract by April 30, 2010 (and who close by the end of June).

5. $6500 tax credit offered to homebuyers who have lived in their current residence for at least five years and who want to “trade up” (buy a new primary residence).

6. A couples can earning as much as $225,000 a year and individuals can earn up to $125,000 would qualify (this is up from $75,000 for individuals and $150,000 for couples).

7. Tax credit will not applicable for buying homes valued at more than $800,000.

8. If you sell your new home or stop using it as your main residence within three years, you would have to repay the credit back.

Now the questions remain, will this helpo the market?  In my humble oppinion I do beleive it will help, perhaps not as much as most might want.  But it should help none the less.

Thanks for Reaing my Blog

All My Best,

Lawrence Bland

Want to learn more about me, check out my blog at http://www.ilivetoblog.com

 

Comments (3)

Charles Stallions Real Estate Services
Charles Stallions Real Estate Services Inc - Gulf Breeze, FL
Buyers Agent 800-309-3414 Pace and Gulf Breeze,Fl.

I truely think like Cash For Clunkers, it just moves future sells to this quarter. Truly would you buy a home thinking the Government is going to give you $8000. off your taxes. I want the money now, so if I was going to buy a home it wouldn't matter either way. But that is me and of course everyone else is entitled to their opinion no matter how wrong they are. :)

Nov 08, 2009 12:22 AM
Lawrence Bland
Lawrence Bland International - Beaumont, TX

Hi Joyce,

Just wanted to let you know that the way the tax credit works is not that they give you money off of your taxes.  Let's say for instance you filed your taxes and you are recieved $4000 back on them.  With the current tax credit, say for a purchase of let's say 150K (it's 10% purchase price or $8,000 which ever is lower), yo would receive and additional 8K back.  That's a total of 12K back, 4k from your taxes already files, and a check from the Govt for 8K.  There are also programs setup now where the buyer can get a loan for their downpayment, then pay it back with the tax credit money.

Hope this helps clarrigy it a bit.

Thanks,

Lawrence Bland

Nov 10, 2009 01:11 AM
Trisha P Realty Group
Realty Executives - Leavenworth, KS
"Holding the Keys to Your Dream Home"

Ok so question:

As long as they have lived there 5 years and are going to buy a new home they can get the 6500, right?  Even if they have live there 20yrs.  With them keep saying 5 out of the 8 is kind of confusing.  So wait... If someone bought a home 3 yrs ago, but before that they lived in a home for 45 years, does that count?

Nov 16, 2009 09:46 AM