5 Major Modifications to New Homebuyer Tax Credit

The homebuyer tax credit worked! It stimulated the market and people bought homes because of it. Brokers all across the land pushed for the extension at office meetings with their agents, and we’ve all since heard that it has in fact been extended until April 30th, 2010. Those who were not able to close on time for the previous expiration date are of course still eligible, but looking at sales that’s only a small few for the last couple of months. Probably the most exciting news is those who were over the income limit to qualify are now included in the stimulus for a credit of $6,500. In addition, the credit is being offered to current homeowners as long as their previous home was used as a principle residence consecutively for 5 of the 8 previous years. Another modification that makes everything easier for everybody is that a buyer must simply be ‘in contract’ (mutual acceptance) by April 30th. After that, a buyer has until July 1st to actually close. Under the previous tax credit, there was a lot of confusion as to when various stages of the purchase and sale process where to occur. There was a lot of ‘had to do by’ events that made it stressful for buyers, and even the sellers.  Now it’s much more elementary and easier for everyone.

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