Even though it was approved by the Congress we were not 100% sure it would be extended. It’s oficial! Obama signed it as part of his plan to stimulate the US housing market.

Other than the extension of the deadline who favors Buyers seeking Short Sales and the addition of existing Homeowners as beneficiaries of the Tax Credit, the most interesting addition to the law is the increase in the amount a Buyer can earn to Qualify. It went from $ $75,000 to $125,000 for single Buyers and from $150,000 to $ 225,000 for married couples. This increase mat trigger the sales of higher priced homes.

Links:
Article at www.Realtor.org: The Basics: Extended Home Buyer Tax Credit

Use it or Loose it, Act Now!

Take advantage of this once in a lifetime freebie. There is a chance this could be extended but it has created as much controversy as most stimulus package incentives … we never know what will happen. In this article from INMAN News Marcie Geffner points out how unfair it could be and how its impact can do more harm than good to the Real Estate Market recovery.

Tax Credit For First-Time Home Buyers:

• Purchases from Jan. 01, 2009 to Nov. 30, 2009
• The amount will be 10% of the purchase price up to $ 8,000
• For 1st Time Home buyers only – purchasers not owning a principal residence for 3 years prior (In the period Jan. 01 2006 through Dec. 31, 2008.
• Max Income to qualify for FULL tax Credit $75,000 for Singles and $150,000 from married couples.

First-Time home buyers with incomes under $150,000 qualify for properties under $300,000. With the high percentage of Short Sales the likelihood of being involved in a transaction that will take 3 months or more are very high; it means that to be able to close on time to qualify for the credit they need to ACT NOW!

If you have any questions or comments about the $8000 tax credit for first-time buyers, please leave a comment below or contact me.  I would love to help.