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Home Buyer Tax Credit Extended

By
Real Estate Agent with Carolina One Real Estate

The deadline for buyers to take advantage of the first-time homebuyer tax credit has been extended to April 30, 2010 and new provisions have been added to include a credit for existing homeowners.

An $8,000 tax credit is available to first-time homebuyers. Purchaser (and purchaser's spouse) may not have owned a principal residence in 3 years prior to purchase to meet first-time homebuyer definition.  A $6,500 credit is available to homebuyers who have owned and lived in a home for 5 consecutive years of the last 8 years.

Any single family residence (including condos, co-ops and townhouses) that will be used as the principal residence and has a purchase price of less than $800,000.

The full amount of credit is available for individuals with adjusted gross income of no more than $125,000 or joint gross income of no more than $225,000.  The credit is phased out to lower amounts for individuals and joint filers with higher gross incomes.

Buyers must have a ratified contract on or before April 30, 2010 and close within 60 days of that deadline.

The previous agreement required that buyers close on their home by November 30 to qualify for the credit.  The expanded agreement gives buyers until April 30, 2010 to ratify a contract and requires that the closing take place within 60 days.

"The Charleston market has maintained a strong momentum coming out of the summer season-due in large part to the tax credit-and we cannot let this momentum lag.  This crucial expansion allows all homebuyers to make an investment in a market that is more affordable than it's been in years" said Ralph Wetherell, President of the Charleston Trident Association of REALTORS®. 

The tax credit, in its original form, helped to establish more than one million families as new homeowners. 

"The homebuyer tax credit has been a critical component to restoring the health of the Charleston real estate market.  We've been showing signs of a recovering market since this summer-inventory is decreasing and prices continue to stabilize.  Extending this credit, not just in timeframe, but to a new group of homeowners will certainly support the continued re-growth of our area" said Wetherell.

For more info or to look at buying a home in Charleston, South Carolina or Folly Beach, South Carolina, please call Randall Sandin at 843-209-9667 or email at rsandin@carolinaone.com. Search for Charleston homes at CHARLESTON SC HOME SEARCH

Comments (5)

Epcon Communities Epcon Columbia
Epcon Columbia, SC - Columbia, SC

Great news.   I think with the new tax credit and low rates, this might be people's last best chance to buy before we see price increases.

Nov 13, 2009 10:24 PM
Sheldon Neal
Bergen County, NJ - RE/MAX Real Estate Limited - Maywood, NJ
That British Agent Bergen County NJ

The tax credit was great for my clients this year, so hopefully this extension keeps new buyers coming in !

Cheers Randall !

Nov 14, 2009 04:12 AM
Randall Sandin
Carolina One Real Estate - Charleston, SC
843-209-9667 - Search for Charleston SC Real Estate

thansk for the comment sheldon - have picked up a few buyers with it but not what i though - hopefully this will increase it

Nov 14, 2009 11:53 PM
Brooke May
Windermere Pacific West Properties - Salem, OR

I am so glad that this got extended. I have a first-time buyer who gave up on getting the credit. He was all bummed about it but now he is super happy and ready to find the place of his dreams. For once, the government gets it!

Nov 17, 2009 04:30 AM
Randall Sandin
Carolina One Real Estate - Charleston, SC
843-209-9667 - Search for Charleston SC Real Estate

Hey Brooke - Thanks for the comment and hopefully will brign us all some more first time buyers

Nov 17, 2009 08:14 PM