First time home buyers, I alluded to it before, but now it’s official: The tax credit has been extended AND expanded. This video, from Keller Williams Realty explains, in depth, the new regulations.
Here is a summary of the key points:
- Must have a signed contract by April 30, 2010 and a closed contract by June 30, 2010.
- First Time Home Buyers are still eligible for a tax credit of 10% of the purchase price, up to $8,000: A First Time Home Buyer is defined below
Existing Home Buyers now qualify for a credit of up to $6,500 on their home purchase.- Existing Home Buyers must have lived in their current residence for 5 of the past 8 years in order to qualify.
- The individual income limit has now been raised from $75,000 to $125,000.
- Couples’ income limit has been raised from a combined $125,000 to $225,000 in annual income.
- The Home Buyers Tax Credit excludes the purchase of investment properties
- Purchases over $800,000 are excluded as well
- Which means that luxury home buyers are out of luck when it comes to the tax credit, but may luck out on a great deal as Luxury home prices have been rapidly decreasing
- Once home buyers have taken advantage of the tax credit, they must keep the home as their primary residence for at least 3 years.
- If the home is sold prior to the 3rd year, the credit must be repaid.
[...] to timing. First time buyers that would have liked to close in December but qualified for the tax credit bumped their timeline up in order to cash in. News of the credit’s extension reached many of [...]
By: Real Estate Update: 2010 Government Action, Housing Stats « Homes By Doyle: The Brentwood TN Insider on February 18, 2010
at 2:34 pm