Tax credit extension is imminent

We have great news for the housing market, as well as the economy as a whole. It looks as though the home buyer tax credit will be extended (and expanded!) into 2010 - the President has not yet signed the extension, but it seems to be a foregone conclusion at this point. Let me give you some details:

1. The pool of home buyers eligible has been expanded - first time home buyers are still eligible to receive up to $8,000 as a tax credit. In addition, current homeowners are also eligible - up to $6,500 - if they have owned their current residence for at least 5 years. The credit is only eligible for primary residences only.

2. The new deadline dates are as follows: contracts for new home purchases must be signed no later than April 30, 2010 - but unlike the previous tax credit stipulations, buyers will have until June 30th, 2010 to close their transaction - giving them 60 days to close after having a signed purchase agreement in hand.

3. Income limits have changed for eligibility - the new income limit for single filers is now $125,000 (it was at $75,000) and $225,000 for married or joint filers (up from $150,000).

4. There is also a cap for eligible homes - the tax credit only applies to homes that have a purchase price of $800,000 or less.

So once the President makes these changes official, let's hope that this credit extension and expansion will continue to be a catalyst for a return to a healthy real estate market, and on a larger scale bring our economy out of its sluggish state. The tax credit has already been largely successful, and it is my hope that we can build and improve on that success!

Eli Johnson - RE/MAX Results

651-357-2536


Posted by Eli Johnson on 11/13/2009
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