Good News for Homebuyers: Tax Credit Extended and Expanded!
Here is some good news for people who are looking to take that big step of owning a home. This past Friday (November 6, 2009), President Obama signed into law an extension of the up-to-$8,000 tax credit offered by the federal government to first-time home buyers. First-time home buyers cannot have owned a home in the 3 years prior to their purchase.
The new program has also been expanded to offer a tax credit of up to $6,500 for some who currently own a home. Current homeowners must have lived in their home as their principal residence for at least 5 consecutive years out of the previous 8 years.
To be eligible for either of these tax credits, the home being purchased must be a principal residence (no vacation or rental homes), and can be a new or resale home, condo or townhome. The home must cost less than $800k.
The program covers qualifying purchases that are under contract by April 30, 2010. The sales must close by June 30, 2010.
The new law also increases the income that is allowed for home purchasers to receive a full tax credit. The limits are now set at $125k for individuals and $225k for couples. The tax credit is phased out when income reaches $145k for individuals or $245k for couples.
The National Association of Home Builders website provides additional information and answers to some frequently asked questions about these programs.
If you are in the market for a home in the Austin area, I would like to assist you with your purchase. You can reach me at (512) 913-1557. 
Jim Gilbert, REALTOR, Heart of Austin Homes. Licensed (#0536692) to sell real estate in Texas.
4501 Spicewood Springs Rd., #1029
Austin, TX 78759 (512) 342-8744