Obama approves homebuyer tax credit extension and expansion! President Barack Obama signed a bill Nov. 6 that extends the $8,000 first-time homebuyer credit until June 30, and makes some current homeowners eligible for $6,500 on a new home purchase. The bill that extends the $8,000 first-time homebuyer credit and expands it to include some existing homeowners.
Under the homebuyer tax credit expanded program, homeowners are eligible for a tax credit of up to $6,500 if they purchase a new home. To qualify, current owners will need to have lived in their prior residence for five consecutive years out of the past eight years. The homebuyer tax credit would apply to home purchases under contract by April 30, 2010, as long as they close by June 30.
First-time buyers (and those who haven’t owned a home in the last three years) continue to be eligible for up to $8,000.
As for income limits, the new credit is available to individuals earning up to $125,000 or couples earning $250,000. That’s up from $75,000 and $150,000, respectively, for the current tax credit. The credit can be used only on homes that cost $800,000 or less, and cannot be applied to vacation or second homes.
