Tax Credit Extended – through April 2010 and to Existing Homebuyers

The First-Time Homebuyer tax credit was about to expire at the end of the month.  Our government leaders have decided to extend it to the end of April 2010 – and to extend it to existing homebuyers as well.  As long as the contract becomes binding before April 2010, you have until May 31 to close. 

For First-Time Homebuyers, the only thing that changes is the deadline – it moves from November 30 to May 31.  The credit is still $8,000.  It is still capped to homebuyers making $225,000 or less.  They added a purchase price cap so that it would not apply to houses with a purchase price of over $800,000. Some new anti-fraud measures were also adopted. 

New credits are extended to existing homebuyers – $6,500 to those purchasing a home if they sell their previous home and lived in it for at least 5 of the last 8 years.  Active Duty Military get another year, until April 2011.

The National Association of Realtors (NAR) has put together a handy table showing the key changes in the tax credit law, and a Frequently Asked Questions document.  Feel free to peruse and share.  Let me know if this helps you decide to go out house-hunting this weekend!

HERE ARE THE HOME BUYER TAX CREDIT INSTRUCTIONS FROM THE IRS!