House & Senate Approve Home Buyer Tax Credit Extension

I am so pleased to announce that the House voted 403-12 in favor of extending the first-time homebuyer tax credit through April 30, 2010. Today’s vote was following Wednesday’s 98 to 0 approval of the bill in the Senate.

The bill is now en route to President Obama’s desk, where it may be signed as early as today (Friday). The Dodd-Lieberman-Isakson amendment included in this bill extends and expands the federal tax credit for first-time homebuyers. The amendment extends the tax credit through April 30, 2010, with an extension of 60 days available if a binding contract is in place prior to the deadline. The $8,000 credit will be extended to income limits from $75,000 for single filers and $150,000 for joint filers to $125,000 and $225,000. Also included in the amendment is a $6,500 tax credit for existing homeowners who have lived in their current residences for at least five years. The home’s purchase price must be below $800,000.

Taxpayers may claim the credit for purchases completed in 2010 on their 2009 income tax returns. Remaining in the bill is the provision that home buyers do not have to repay the credit provided as long as the home remains their primary residence for 36 months after purchase, and waives this requirement for active duty military personnel who move due to a military order.

This is such great news for our clients who have been patiently waiting for short sale approval and thought they would lose out on the credit. And for those move up (or move down) clients who have been considering a purchase, this may help ease the pain of lost equity. It's not going to last forever, and with the impending threat of higher interest rates, now it the time to make that move!

FInd below, some very helpful links to more information about the Bill:

Changes to the Homebuyer...
Frequently Asked Questio...