First time home buyer tax credit extended! A new Senate proposal will offer a first time home buyer tax credit extension to homes under contract by April 30, 2010. The former deadline was November 30, 2009. The home buyer tax credit will also be offered to people who have lived in the same home for five years, according to the proposal, which at time of writing hasn’t passed yet, but has bipartisan support.
- First time homebuyers, the income level to qualify is $75,000/150,000 (couple).
- For step up buyers the income level to qualify is $125,000/250,000 (couple).
- For first time buyers the credit remains $8,000.
- For step up buyers, they must have been residing in their primary residence for 5 years.
- For Step up buyers the credit is 10% of the sales price, with a maximum of $6,500.
- The credit runs from Dec. 1, 2009 to April 30, 2010.
- For legitimate sales contracts as of April 30, 2010 you have 60 days to close.
- There is a waiver for military.
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An agreement reached yesterday by the Democrats would let homeowners who buy a new home qualify for a $6,500 credit if they have lived in their prior residence for five years, according to Regan Lachapelle, an aide to Senate Majority Leader Harry Reid.
“The compromise we have now would expand the credit beyond first-time homebuyers,” Lachapelle said. Lawmakers expect to consider the measure as part of a bill to extend unemployment benefits, she said. That measure has been held up by a disagreement with Republicans over other proposed amendments.
Lawmakers have said they want to keep home sales from slipping as the economy struggles to recover from the worst drop in home prices since the Great Depression. The plan would extend the homebuyers credit, due to expire Nov. 30, to home purchases under contract by April 30, 2010, with borrowers allowed another 60 days to close the sale, according to a person familiar with the details of the agreement.
The credit would be available to individuals earning up to $125,000, or $250,000 for couples, up from $75,000 for individuals and $150,000 for couples under the current law, Lachapelle said.
{ 10 comments… read them below or add one }
What does “step up” buyer mean?
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I take it to mean that if you have owned a home for the last five years and purchase another home, you will be eligible for the credit.
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I had own a home 4 years ago, I lost it through foreclosure because i was going through a divorce. I have been renting ever since. I am now ready to buy. Am I qualified as a first time home buyer?
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leonard ~ you qualify as a first time homebuyer as long as you have not owned a home in the last 3 years. So since yours was 4 years ago…you are now considered a first time buyer again.
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Ok so…. We can buy a house from now until April 30th, and still get the 10% tax credit? Just like before? Am I clear on this?
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as long as you haven’t owned a home in 3 years, yes, you are a 1st time buyer.
I am guessing ’step-up’ means that you are purchasing a more expensive home, as in my opinion, it would be fraudulent to get a credit to step down to a less expensive home - but just a guess.
Bottom line - it isn’t extended until the bill is passed. Very misleading and disappointing title. Especially for some one on the fence between bidding with a slim chance of closing or waiting to see what, if anything, is passed
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Question, if I owned a home for 10 years, sold it and moved out of state and lived in an apartment for (as of right now) 2 years, does that still qualify as a step up purchase? April 30 2010 would put me at 2.5 years so no luck on the first time buyer..
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What about the people who bought a house last year in 2008, the $7500 credit has to be paid back, is that still true?
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Okay, we sold our house last November. We lived it it for over 10 years. We are getting ready to close next week. Would we qualify if we closed on Dec 1?
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I sold my previous home in Sept 09 that I owned for ~8 years.
I just closed on my new home 2 days ago 10/30/09.
From my reading it looks like I will be one of the unlucky ones to miss the tax credit.
Is there any ‘fine print’ in the bill that will cover my situation?
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