First-Time Home Buyer Credit Extended and Expanded

On November 5, Congress passed an extension to the  First-Time Homebuyer credit. The credit for first-time home buyers is still $8,000.  The credit remains 10% of the cost of the home or whichever is less.

First-time home buyers who are presently trying to the meet the November 30 deadline can still qualify under the new bill.

DETAILS:

All qualifying buyers using credits must be under contract (that means all parties in agreement and signatures) by May 1, 2010 and then must close by June 30, 2010. 

SPECIFICS:

• A first-time homebuyer is someone who has not owned a home in the past three years.

• Income limits for those using the credit is raised from $75,000 to $125,000 a year for individuals and from $150,000 to $225,000 for couples.

• Credit for first-time homebuyers remains 10% of the cost of the home or $8,000, whichever is less.

• Existing homebuyers must have owned and lived in their current home for 5 years.  Does not apply to second homes or investment properties.

• The existing home buyer credit is $6,500 or 10% of the value of the home whichever less.

• The purchase limit on a new home cannot exceed $800,000.

To claim either credit, use the same IRS form 5405 and add to an amended return form.  There is also now a requirement to add a copy of your certified Settlement Sheet.  To get all the details go to http://bit.ly/1×4iNY.

The other great news for homebuyers this week, is that the 30-year mortgage rate fell below 5%.   If you need help, check out http://bit.ly/howur Send me an email or a tweet and I’ll be glad to suggest someone who can assist you in your area.   Always glad to help…