Now Official: Congress Extends and Expands Home Buyer Tax Credit

November 6, 2009

San Antonio First-Time Home Buyer Tax Credit

The new law will extend the $8,000 credit for first-time home buyers for sales contracts entered into by April 30, 2010 and closed by June 30, 2010. Further, it has been expanded to include a new $6,500 credit for owners of existing homes who are purchasing a new principal residence. An existing home owner can claim the $6,500 tax credit if they have been residing in their principal residence for five consecutive years out of the last eight.

Additionally, the income eligibility limits to claim the full credit amount for both groups of home buyers have been raised to $125,000 for individuals and $225,000 for married couples. The purchase price of the home cannot exceed $800,000. To help guard against fraud, buyers are required to attach documentation of purchase to their tax return.

Clearly, the time to act is now! Mortgage rates remain at historically low levels. The 30-year fixed rate mortgage fell to 4.97% last week. Also, Congress has indicated there will be no further extension. Buyers who wait to sign a contract could find themselves settling for a home they really don’t want, if they can find one at all. This once in a lifetime opportunity will shortly be gone for good.

Don’t take a chance and procrastinate – there won’t be another chance! Register below to get started.