The homebuyer incentive tax credit will not be renewed for a third time
In a recent Los Angeles Times article, the end of the program was explained. Home buyers hoping to take advantage of a new or extended tax credit should not procrastinate: This third bite at the apple will be the last.
Legislative advocates of the $8,000 credit for first-time buyers and the $6,500 credit for move-up buyers made it clear during the debate on Capitol Hill that the benefits would not be renewed when they expire. This fact was confirmed by a lobbyist for the National Association of Realtors at the organization’s annual convention last month.
So what does that mean for potential buyers? If buyers meet the income eligibility requirements, they have until midnight April 30, 2010 to be in contract and must close escrow by midnight June 30th to qualify.
Couples earning as much as $225,000 a year and individuals earning up to $125,000 would qualify. That is up from the current $75,000 limit for individuals and $150,000 for couples.This is a great incentive that can give the first time home buyer up to $8,000.00 back in tax credits.Added is a $6,500 tax credit for existing home buyers who have lived in their residence at least five years.Couples earning as much as $225,000 a year and individuals earning up to $125,000 would qualify. Those buying homes worth more than $800,000 wouldn’t be eligible for the credit. Those who sell their new home or stop using it as their main residence within three years would have to repay the credit.
Loan Limits Extended into 2010: President Obama signed a resolution extending the current limits for Fannie Mae, Freddie Mac, and FHA loans through the end of next year.
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