Home Buyer Tax Credit

The Home Buyer Tax Credit Has Been Extended and Expanded…

At a Glance:

FIRST TIME BUYERS

Credit: Equal to 10 percent of the home's purchase price, up to $8,000

Who Qualifies?

·         Those who haven't owned property in the last three years

·         Those with income up to $225,000 for couples or $125,000 for individuals (credit phases out for people who make more than these amounts)

·         Must be at least 18 years of age to claim credit

·         Purchase price must be $800,000 or less

Deadlines:

·         Have until April 30, 2010, to enter into a contract for a home purchase

·         Have until June 30, 2010, to close on the purchase

CURRENT HOMEOWNERS

Credit: Equal to 10 percent of the home's purchase price, up to $6,500

Who Qualifies?

·         Those who have owned and lived in their principal residence for at least five consecutive years during the past eight years

·         Those with income up to $225,000 for couples or $125,000 for individuals (credit phases out for people who make more than these amounts)

·         Must be at least 18 years of age to claim credit

·         Purchase price must be $800,000 or less

Deadlines:

·         Have until April 30, 2010, to enter into contract for a home purchase

·         Have until June 30, 2010, to close on the purchase

In addition, buyers have another year to take advantage of the higher loan limit for mortgages backed by the Federal Housing Administration, Fannie Mae or Freddie Mac set at 125 percent of local median home sales prices, up to a maximum of $729,750 in high-cost housing markets. The limit in normal markets will remain $271,050 for FHA and $417,000 for Fannie Mae and Freddie Mac.

PLEASE NOTE: The tax credit does not have to be repaid provided you live in the new home for a minimum of three years.  Military families are exempt from this stipulation.

For more information go here.... http://federalhousingtaxcredit.com