Investment Mortgage Guy

I get asked this question at least five times a week. Do you think the tax credit will be extended for the first time home buyers? Well folks, it looks like it’s going to happen.

First Time Home Buyer Tax Credit Extension Details

If the Democrats version of the Senate bill is passed when it comes to vote in the next few weeks (as it is expected to), the first-time home buyer credit extension would have the following details:

• The credit would be available for homes that go under contract by April 30, 2010. However, you would still have 60 days afterward to close.
• It would be attached to a bill to extend unemployment benefits that is expected to be voted on in the next few weeks.
• First-time buyers (those who have not owned a home for three years) can claim an $8,000 credit, the same as before the extension.
• Income limits would be expanded: $125,000 a year for individuals (up from $75,000) and $225,000 (up from $150,000) a year for married couples who are filing a joint return.
• The proposal will include anti-fraud measures, including minimum age requirements and additional authorities for the IRS.

First Time Home Buyer Tax Credit Expanded to Existing Home Owners

Existing homeowners who buy a new principal residence after living in their current home for at least the last five years can claim up to a $6,500 tax credit.

I am excited to see the credit continue and really excited to see it expand into the non-first time home buyer arena. This will help the upper bracket market which is suffering the worst right now. We will know for sure in the weeks ahead.

For now, happy investing!