Saturday, November 7, 2009

Update to Housing Stimulus - Tax Credit Extended and Deepened!

It happened!!! Much of this and last week was a buzz about whether or not the previous housing stimulus package, most notably the $8,000 tax credit, would really disappear at the end of this month. Well, it hasn't! The new tax credit changes have extended the credit until April 30, 2010. This means you must have a home under contract by this time and it must close before July 1, 2010 or the credit disappears.

In addition to this tax credit aimed at first time buyers, lawmakers have extended a second credit to "move up" buyers, those moving from one home to another, up to an amount of $6,500.

Finally, the income thresholds for the first time buyer tax credit have been increased from $75,000 (individually) or $150,000 (as a couple) to $125,000 and $225,000 respectively.

The chart off to the right covers all the details and eligibility requirements of the program. Click on it for the large sized version.

It's really nice to see some relief to the multitude of home buyers out there frantically trying to close in the next 20 days. Attn: home buyers, ThIS IS YOUR BREAK, procrastination time is officially over. :)

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