Exciting news in the Real Estate world. Both houses of the US Congress have agreed to extend the popular $8,000 First time homebuyers tax credit and the president has announced he’s eager to sign it. The new proposal would extend the deadline for the tax credit through April 30th, 2010 however the deadline is not the same as the current deadline because now a buyer must only be in escrow by April 3oth, and may close as much as 60 days later, pushing the deadline to June 30th more likely. Right now buyers must have their escrow closed by November 30th, not questions asked.
What might be even more exciting is the provision that would allow people that have already owned a home to claim the credit if they buy before the deadline as well. This is a significant change from the current rule that only allows those that have not had ownership interest in a property in the last 36 months. The credit for these people would be slightly lower at $6,500 and would only be granted to those vacating a property that has been their only primary residence for the last five years.
The Senate has also increased the income cap for those allowed to take the credit. Single buyers can now make $125,000 a year, up from $75,000 and married couples can make $225,000, up from $150,000. The new income limits apply to both first time and move-up buyers.
Of course I will keep you updated as usual. And if you know anyone that might be interested in claiming this fantastic credit (someone looking to buy a house) please have them give me a call. I will make sure they get the best possible loan and hook them up with a top Realtor that is an expert in the area they want to live in…