With any new program there are questions about what can be done and what can't. here are a few relivant facts for both first Time Home Buyers and the group many professionals are calling "Mover's".
Fact #1...Existing homeowners can use the credit. The question I have had to answer several times is, "Must the new house cost more than the old house/" NO, thus for example individuals who move from a high cost area to a lower cost who meet all eligibility requirements will qualify for the $6,500 tax credit. (Source www.realtor.org)
Fact #2...Existing homeowner tax credit is equal to 10% of the home's purchase price up to a maximum of $6,500. Purchases of home over $800,000 are not eligible for the tax credit. (Source National Association of Home Builders)
Fact #3...Any home hat will be used as a principal residence, provided the purchase price is less than $800,000 will be eligible for the $6,500 Tax Credit. Tins includes single family detached homes, townhomes, condominimums, mobile homes and houseboats. However, the home cannot be purchased from family members including parents, grandparents, children, grandchildren, spouse or spouse's family members. (Source: National Association of Home Builders)
As mortgage money begins to tighten near the end for the 1st quarter of 2010 the pool of potential buyers will begin to diminish. This will continue to put pressure on sellers.