We did it! Okay fine — it probably wasn’t just our efforts alone . But we got even more than we were asking for, and the lucrative Dallas-Ft. Worth homebuying window will stay open a little bit wider and longer.
Not only did Congress extend the current $8k tax credit for first time home buyers (originally discussed here ), but a new $6,500 tax credit for home buyers who have owned their current homes for at least five years will kick in as well.
Good news on both counts.
Combined with historically low interest rates, the tax credit has turned the Great Recession into a golden homebuying opportunity for those who didn’t have to sell in order to buy. Current homeowners still face the selling hurdle before being able to take full advantage, but will still greatly benefit from a healthier and more active housing market.
To qualify, both groups of buyers need to sign a purchase agreement by April 30, 2010, and close by June 30 — a seven month augmentation to the original Dec. 1 deadline.
"This is probably the last extension," Sen. Johnny Isakson, R-Ga. told the Associated Press.
Other details:
- The first-time buyers $8,000 tax credit is actually a misnomer, as anyone who hasn’t owned a house in the past three years can qualify.
- The credit is only available for principal homes costing $800,000 or less (no vacation homes). Individuals with annual incomes above $125,000 — and for joint filers with incomes above $225,000 — will see the credit phased out.
- Members of the military serving outside the United States for at least 90 days get an extra year — until June 30, 2011 — to close on a house.
Contact us to see if the $8k tax credit extension or new $6,500 tax credit could work for you.
Tags: first home, Home Loans, home purchase, homebuying advice, tax credit
this is a good blog. will come back regularly to read more posts