Tax Credit Extended and Expanded

The United States Government has extended the $8,000 home buyer tax credit to May 1, 2010, for first-time buyers. They've also added a $6,500 tax credit for existing homeowners if they've lived in their home for five of the past eight years.

The income limits have increased and are the same for first-time buyer and the existing homeowner ($125,000 for single filers and $225,000 for joint). The eligible home price limit has been increased to $800,000.

Eligible homes must be purchased between December 1, 2009 and April 30, 2010. A 60-day extension is allowed if a binding contract is in place by April 30, 2010. Anti-fraud measures have been added. As in the previous program, the tax credit applies only on the purchase of an individual's primary residence. Purchases of second homes and investment properties are not eligbile.

For complete details, please contact your Baird & Warner Financial Services Mortgage Specialist. Click here for a directory.

Associated Press:
Obama Signs Bill Assisting Homebuyers, Jobless

NAR:
Homebuyer Tax Credit Changes (pdf)