Let's understand the Extended Tax Credit better

I am sure that most of you are aware of the initial "first time home buyer tax credit for up to $8,000" that was signed last year for all sales up until December 1, 2009.

As most of you know this has been extended until April 30, 2010, it still includes the $8,000 tax credit for first time home buyers, but it also includes current home owners who have been in their current home for the past 5 years who are looking to purchase a $6500 tax credit between November 7, 2009 until April 30, 2010.

Another point some are not aware of, is what qualifies you as a first time home buyer..... In this sense, you are considered a first time home buyer if you have not owned a home furing the three years prior to your purchase.

What other qualifications must you meet? Well now if you are single you may have an income up to $125,000 and if married up to $225,000. If you make more than these wages, you may still be eligible for some of the money, so don't give up just yet!

The date of April 30, 2010 being the cut off date, does not mean that you need to have settled by that date as before it was settled by December 1, 2009. You will now have until July 1st, 2010 to close, but must have a signed written binding contract by April 30, 2010.

As with before, you will NOT have to pay this back  as long as you are in the home for 3 years or more.

 

For more information, please visit this Real Estate site for more information!