Yes, you read that correctly, the new bill offers a tax credit for current homeowners looking to replace their primary residence. There are some special requirements to take advantage of the Existing Homeowner Tax Credit.
1. You must have owned and occupied your existing home for 5 out of the last 8 years.
2. The tax credit for existing homeowners is $6,500 instead of $8,000.
3. The new home must be less than a $800,000 purchase price.
4. The other requirements for the Frist Time Homebuyer Tax Credit are in place as well.
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Requirements for the First Time Home Buyers Tax Credit.
First-time home buyers who purchased after January 1, 2009 and close before April 1 2010, would get the full $8,000. For homes bought after April 1, 2010 to December 31, 2010 the credit is still available, but it would be reduced by $2,000 in each successive quarter until expiring at the end of 2010. This is an update from the original November 30, 2009 deadline.
- Income qualification limits: The home buyers’ credit would be available to individuals with a modified adjusted gross income of up to $125,000, or $250,000 for couples, up from $75,000 for individuals and $150,000 for couples under the original rules. The higher income limits are only for homes purchased after Nov. 6, 2009. That is, the existing phase-outs of $75,000 to $95,000 or $150,000 to $170,000 for joint filers still apply to purchases on or before Nov. 6, 2009.
- The approved extension would extend the credit, due to expire Nov. 30th, to home purchases under contract by April 30, 2010, with borrowers allowed another 60 days to close the sale.
Great news for prospective home buyers First Time Home Buyers and Existing Home Owners looking to purchase a new home!
Contact us today for more information or to start looking for a new home!
James Murr
979-985-5610
College Station Real Estate
