Great news for buyers and sellers!  The Federal Housing Tax Credit has been amended and extended.   In addition to credits for first time buyers, there is also now a credit for move-up buyers.

FIRST TIME HOME BUYER CREDIT:

• $8,000 tax credit for first time buyers – which is defined by IRS as someone who hasn’t owned a principal residence during the three years prior to this purchse.
• Tax credit is up to 10% of the home’s purchase price – maximum of $8,000.
• Home price must be less than $800,000 sales price.
• Applies to sales occurring on or after January 1, 2009 and on or before April 30, 2010.  However – if binding agreement is reached on April 30, 2010 – you just have to close by June 30, 2010 to be eligible.
• For homes purchased after November 6, 2009 and by April 30, 2010 – the income has been increased to single filers at $125,000 and married couples filing jointly at $225,000 to qualify for the full tax credit.

MOVE-UP BUYERS:

• To be eligible to claim the tax credit – buyers must have owned and lived in previous home for 5 consecutive years out of the last 8 years.
• Tax credit doesn’t have to be repaid
• Tax credit is equal to 10% of the sales purchase price up to $6,500
• Tax credit applies to homes with purchase prices of $800,000 or less
• Applies to sales occurring on or after January 1, 2009 and on or before April 30, 2010.  However – if binding agreement is reached on April 30, 2010 – you just have to close by June 30, 2010 to be eligible.
• For homes purchased after November 6, 2009 and by April 30, 2010 – the income has been increased to single filers at $125,000 and married couples filing jointly at $225,000 to qualify for the full tax credit

This should help continue to move inventory along with the great low interest rates.  And if you are selling your home – this will also help open doors to buyers who might need just a bit more incentive to buy!  As always – contact me if you have any questions or are interested in buying or selling!

You can visit the Federal Housing Tax Credit site here.