President Obama signed the extended home buyer tax credit bill on Friday. So, what does this mean? How does it work?
We’ve already gone over some of the major changes to the credit, but here they are again:
- Both first-timers and existing homeowners would be able to take advantage of the expanded program through the end of April.
- The measure would continue giving an $8,000 tax credit to first-time buyers and would provide a $6,500 tax break to qualified homeowners looking to move up to middle-market homes that cost no more than $800,000.
- The legislation would raise the qualifying income levels to $125,000 for individual income tax filers and to $225,000 for joint filers.
Also, a bit more on how this works, from Real Estate Economy Watch:
The effective date is the date of enactment, presumably today November 6,* for the enhanced first-time buyer credit and for the new credit. It is not retroactive. However, first-time buyers who have been rushing the meet the November 30 deadline for the existing program need not worry. They can qualify under the new one. Existing homeowners who are also in the process of buying a home should consider delaying closing until December 1 or later to qualify for the credit.
Both credits expire next spring. Buyers must have a contract on a home before May 1, 2010 and they have until June 30, 2010 to close in order to qualify.
For more information about income limits, costs, and how to apply, read the rest of the above mentioned article at Real Estate Economy Watch. And, of course, if you have questions, feel free to contact us!