Home Buying Tax Credit Extension

As many of you may know, the First Time Homebuyer Tax Credit has been extended through April and expanded to include current homeowners.


For those who need to move, or have been in the market for a house, it’s a good time to buy – low interest rates, the government tax incentive, and lower home prices compared to recent years. (See my post on Luxury Real Estate For A Steal)


If you are planning to purchase, I thought it would be helpful to break down the eligibility and details for first-time home buyers and current homeowners.

Time To Buy Into The American Dream?

First-Time Homebuyer

Amount of Credit:

10% of purchase price or $8,000 whichever is less

Eligibility:

Has not owned principal residence for the 3 year period prior to purchase

Income Limits

$125,000 – Single; $225,000 – Married

Maximum Cost of the Home

$800,000

Credit Expiration

Must open escrow by April 30, 2010

Payback of Credit

The tax credit does not have to be repaid if the home is used as a principal residence for 3 years.

Repeat Buyer

Amount of Credit:

10% of purchase price or $6,500 whichever is less

Eligibility

Must have lived in current home for 5 consecutive years out of the last 8 years

Income Limits

$125,000 – Single; $225,000 – Married

Maximum Cost of the Home

$800,000

Credit Expiration

Must open escrow by April 30, 2010

Payback of Credit

The tax credit does not have to be repaid if the home is used as a principal residence for 3 years.

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