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5 Major Modifications to New Homebuyer Tax Credit

November 13, 2009 by  
Filed under Featured, Finance, National

coupleThe homebuyer tax credit worked! It stimulated the market and people bought homes because of it. Brokers nationwide 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 over the last couple of months. Probably the most exciting news is that 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 five of the previous eight years. Another modification making things easier for everyone 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.

First-time Buyer Credit $8000 credit $8000 credit
Current Homeowner Credit Not eligible $6500
Expiration (Must be in contract by…) undefined April 30th, 2010
Closing Date Nov. 30th, 2009 July 1st, 2010
Income Limits $75,000 (single)$150,000 (married) $125,000 (single)$225,000 (married)
Limitation on Cost of Home none $800,000