President Obama approved the extension of the tax credit for first-time homebuyers to include certain home purchases that close no later than April 30, 2010. The homebuyers credit originated in February as part of an economic stimulus bill, and was due to expire December 1. More than 1.2 million borrowers have claimed $8.5 billion of the $13.6 billion set aside for the homebuyer tax credits this year, according to the Treasury Department.
Under the extension, first-time homebuyers are eligible for a tax refund of up to $8,000 on the purchase of a principal residence.
- Homes must have a purchase price under $800,000 and can include newly-constructed or resale homes and single family detached, townhomes or condominiums. Excluded are vacation home and rental property purchases.
- Homes must be purchased after November 6, 2009 and before May 1, 2010, although home purchases subject to a binding sales contract signed by April 30, 2010 will be allowed. Closing must occur within 60 days.
- The income cap for qualifying has been raised to $125,000 for individuals and $225,000 for married couples, up from $75,000 and $150,000 respectively.
Many believe the extension and broadening of the program will help continue the momentum of the housing recovery.
What do think? Are you taking advantage the credit? Let us hear from you.
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