Tax Credit for Homebuyers Close to an Extension

28 Oct
October 28, 2009

It’s all over the Real Estate world this morning. Lawmakers are close to extending the Tax Credit for first time home buyers, it could be a done deal as soon as today (although, this is Washington, so that means it could take a bit longer…).

According to an article on Bloomberg, the tax credit would also include step-up buyers who have lived in their homes for at least 5 years. This addition is a huge boon to buyers and sellers alike as it has the potential to double the demand for homes as step-up buyers filter back into the Real Estate arena. This new proposal does have some differences from the previous iteration, and some of the key points outlined in the bill are as follows:

  1. Tax Credit would be capped at 10% of the home’s sale price with a maximum limit of $7,290.
  2. This credit is available to both first time buyers (individuals who have not owned a principal residence for 3 years or longer) and step up buyers who have lived in their principal residence for at least 5 years.
  3. This extension would be offered to purchasers who are under contract by April 30, 2010
  4. This credit is only available on homes costing $800,000 or less – currently there is no cap on price (and common sense dictates that if you are purchasing a home above this price range you probably do not need financial assistance from the government to do so).
  5. Income eligibility for first-time buyers will remain the same: $75,000 for individuals and $150,000 for couples
  6. Income eligibility for Step-Up buyers are proposed at: $125,000 for individuals and $250,000 for couples

Stay tuned for more, and search for homes: www.averyhess.com

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