First Time Homebuyers Tax Credit Expanded and Extended
Potential home buyers just got some good news..more money and time is coming their way. Just on Friday, President Obama signed into law a bill that extends the First Time Home Buyers tax credit, which is also being expanded to include benefits for homebuyers who aren’t on the first time around buying a home.Here’s a chart that gives you an idea who can get what.
New
Tax Credit Rules
| Feature | Original Program | Extension |
| Deadline | Must fund by Nov. 30, 2009 (WFHM deadline was Oct. 30) | The measure is written differently so that a sales contract must be in place by April 30, 2010 – but homeowners have an additional 60 days to close. |
| Dollar Amount and Eligibility | Up to $8,000 for first-time home buyers (or 10 percent of the purchase price of the residence) if purchased Jan. 1 – Dec. 1, 2009
A FTHB was defined as someone who had not owned a home during the previous three years
|
Up to $8,000 for first-time home buyers
– OR – $6,500 for current homeowners who have lived in their current residence for 5 consecutive years and are purchasing their next property
|
| Income Cap | $75,000 (individual)
$150,000 (married couples)
|
$125,000 (individual)
$225,000 (married couples)
Increases in the cap make the measure available to a broader group of customers.
|
| Purchase Price | N/A | $800,000 or less |
| Repayment requirement | Must live in home for 3 years or be required to repay the credit | Same |
| Documentation to be used | Documentation requirements and WFHM process still TBD. |
