Buying A Home - Tax Credit is Extended and Expanded

Wow!  Here It Is - the Final Word on the Tax Credit. 

The House and Senate voted and President Obma just signed into law a bill that extends the First Time Home Buyer's TAX CREDIT.  This means if you have never owned a home before OR have not owned a home in the last 3 years, you can get a Tax Credit of 10% of the purchase price of the home you buy.  There is a cap of $8000 for the 1^st Time Home Buyer Tax Credit so if your house costs more than $80,000, then 8K is all you get. But that is a nice little chunk of change. You MUST have a house picked out and Under Contract by April 30^st and you MUST be closed by June 30 to receive the tax credit.

This extension also adds a provision for NON-1^st Time Home Buyers who want to BUY A NEW HOME..  If you have owned a home for the last 5 years and buy a new home (your primary residence - not a vacation home), you can get a TAX CREDIT equal to 10% of the purchase price of your New home (with a cap of $6500). The income limit for the non-1^st time home buyer is 125,000 for a single person and 250,000 for a couple. You also MUST have a house picked out and Under Contract by April 1^st and you MUST be closed by June 30 to receive the tax credit.

If you were waiting for something great to happen THIS IS IT.  Not only can 1^st time buyers get a credit, but also people who would like to move up to a bigger home, or downsize to something more manageable. 

Interest rates are still low - the last time I looked, they were under 5% for most borrowers and in spite of what you may hear, the banks have plenty of money to lend for home purchases.  Also, you get a CREDIT - Not a deduction, so you will pay up to $8000 or $6500 depending on which category you are in, in less tax. If your tax bill is less than the credit amount, you will get CASH BACK!

If you haven't already done so, now is the time to contact a lender and get pre-approved for a loan.  There is nothing you have to apply for to get the credit, just request the credit when you file your 2009 tax return if you close in 2009, or your 2010 return if you close in 2010.

You can shop for houses on line at my website www.ToniBird.com,  At the top left corner, click on Search the MLS. When you are ready, contact me and I'll help you find the home of your dreams.