The tax credit for first-time homebuyers was extended into 2010 with Congressional Approval. The bill is awaiting the signature of the president. This is good news for buyers because Senator Isakson added a tax credit to buyers who are looking to upgrade buyers who would like to take advantage of these market conditions and upsize their living conditions. This can be seen as a reward for those who are homeowners and have managed their responsibly.
The way I understand this bill is that first-time buyers can receive an $8000 tax credit (or 10% of purchase price, whichever is less). Also under this new plan, buyers who have owned their home for 5 consecutive years of the last 8 will be eligible for a $6500 tax credit.
To qualify, buyers will have to have a signed purchase agreement on or before April 30, 2010 and close the loan on or before June 30. The income limitations have also been expanded. The limitation for a single taxpayer is $125,000 and $225,000 for joint returns.
Now is STILL the time to buy. The foreclosure inventory is shrinking, so the really good deals are starting to be fewer and fewer. If you’ve thought about selling your present home that you’ve lived in for the past five years and upsizing – now is a great time with low interest rates and lower home prices.
I’m not a “hand-out” kind of guy, but I do like it when people who have been fiscally responsible are rewarded with a “tax break” of sorts.