The Dream of Home Ownership is Even More Within Reach, BUT YOU SHOULD BUY NOW!

Congress has extended the $8000 Tax Credit as well as added some new enticing tweaks.

• The First Time Homebuyers Tax Credit of up to $8000 has been extended until April 30, 2010
• The credit has been expanded to give a $6500 credit to current homeowners purchasing a new or existing home (which includes condos and townhouses) between November 7, 2009 and April 30, 2010.

Let's look at some details.

WHO QUALIFIES?

First Time Homebuyers (those who have not owned a residence during the three years prior to the purchase) who purchase a home between 11/7/2009 and 4/30/2010. AND current homeowners purchasing a home between 11/7/2009 and 4/30/2010, who have used the home being sold or vacated as a principal residence for five CONSECUTIVE years out of the last eight.

HOW IS THE CREDIT DETERMINED?

• Credit only applies to homes purchased for $800,000 or less.
• Single buyers with incomes up to $125,000 and married couples with incomes up to 225,000 may receive the maximun tax credit. If the Buyer exceeds the limit there are some allowances still. Let me know if you would like to know more.

The credit represents 10% of your purchase price up to $8000.

IF THE BUYER CLOSES AFTER APRIL 30 2010, CAN SHE OR HE STILL QUALIFY?

As long as the contract is a written and binding instrument before April 30, the purchaser has until July 1, 2010 to close.

DOES THE BUYER HAVE TO REPAY THE TAX CREDIT?

No, not if he or she occupies the home for three years or more. If the property is sold during this period, the full amount of the sale will be recouped on the sale.

HOW DOES THE TAX CREDIT WORK?

You receive the actual money in the form of a check. You can even apply for the credit right away by amending hour 2008 tax return. Or you can file it with your 2009 tax rfeturn. You an apply the credit to the incime tax that you owe, or if you don't have tax to pay, uncle Sam will scratch you a check.

WILL MORTGAGE RATES BE EFFECTED WHEN THE TAS CREDIT IS OVER?

Likely the rates will move above 6% after March 30th.

WHAT'S THE MORAL OF THIS STORY?

You should become thay happy homeowner now. The train is leaving the station and there isn't  any other home buyer tax credit in sight!