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First Time Buyer Tax Credit

Posted on November 4, 2009 by Ray Williams (NMLS #216267).

It appears that with the Senate 85-2 vote on the amendments to H.R.3548, the Unemployment Compensation Extension bill; we may actually achieve an extension and an expansion of the First Time Home Buyer Tax Credit. Highlights, if the amendment, as considered in the Senate is passed with the Unemployment bill, include:

>  A purchase transaction will qualify for those entering a binding contract before May 1, 2010 with a closing date before July 1, 2010.

>  The credit is up to $8,000 for a married couple. ($4,000 individual)

>  The original tax credit provision is expanded to include purchasers who have resided for 5 consecutive years (out of the past eight years) in their primary residence to qualify for a tax credit of up to $6,500 ($3,250 individual) on the purchase of a new primary residence.

>  Income levels have increased to $125,000 (single [was $75,000]) and $225,000 (couple [was $150,000]).

>  If the purchase price is greater than $800,000 no credit is allowed.

>  Persons stationed outside the United States on official duty for 90 days during the period after 12/31/2008 and before 5/1/2010 will have eligibility extended for binding contracts signed before 5/1/2011  and closed before July 1, 2011.

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