HOME BUYER TAX CREDIT - EXTENDED AND EXPANDED!
*President Obama is anticipated to sign this Bill tomorrow!
House lawmakers today passed the Bill extending the First Time Home Buyer Tax Credit - for Purchase Agreements signed no later then April 30, 2010 and closed no later then June 30, 2010.
The tax credit equates to up to 10% of the home's purchase price and remains capped at $8,000; however qualifying income levels have been raised to $125,000 for single tax filers and $225,000 for joint filers up from the original levels of $75,000 and $150,000 respectively.
In addition the Bill also creates a $6,500 tax credit for homeowners who have owned their current home for a period of 5 years. The same income level restrictions apply to current homeowners.
One source suggested that the credit will apply until 2011 for members of the Military Service who reside for 90 days or more outside of the United States.
One caveat worth mentioning is that the home purchased must be the buyer's principal residence and it cannot exceed a purchase price of $800K.
Reaction remains mixed with some lawmakers expressing concern that the homes would have been purchased regardless of the existence of the tax credit. NAR - National Association of Realtors believes that of the 1.4 Million buyers who have qualified for the Tax Credit approximately 350,000 buyers would not have purchased a home without the $8,000 credit.
This Realtor believes the most important aspect of the credit is the resurgence of consumer interest and confidence in the purchase of a principal residence. There has been a shift in purchase momentum which should continue throughout the coming months.