First Time Homebuyer Tax Credit close to being extended
Great news on the First Time Homebuyer Credit - The House of Representatives has approved legislation that would extend and expand the credit. The House vote came after the Senate voted on Monday to approve the extension but we still need to be cautious as there is more work to be done before the legislation is complete and signed off by President Obama. Indications are that the final bill, agreed upon by both the house and senate, should reach President Obama for his signature by the end of this week and his administration has indicated that the president will likely sign the bill.
Under the current proposal the income limits will be raised for individuals with incomes up to $125,000 a year and couples earning up to $225,000. The extension would cover new home purchases under contract by April 30th and will require them to be closed no later than June 30th, 2010.
The big news for current home owners is that the tax credit will be expanded to non-first time homebuyers as well. The tax credit will be slightly different for non-first time homebuyers as the credit is reduced from $8000 to $6500. In addition they must have owned a home for at least five of the past eight years.
Keep in mind that this bill is NOT final and will require the presidents’ signature. Stay tuned, and be aware that even if it is approved, it could contain further changes. Continue to watch my blog for more updates.