Well, it looks like if you are dreaming of owning a home in the next few months (Yes, I am 😉 then there is some heartening news for home buyers who want to get the $8,000 tax credit from the federal government stimulus package, but are running out of time in closing the deal by Nov. 30.
Trying to create more of an incentive for home buyers, the senate agreed Wednesday to expand and extend the tax credit till June 30, 2010 Trying to create more of an incentive for home buyers and to spur home buying, the Senate unanimously agreed Wednesday to extend and expand the termination of home buyer tax credit into spring.
President Barack Obama is expected to sign the bill today. Like the current phase of the government’s homebuyer tax-credit program, only first-time purchasers were eligible for up to $8,000 in tax credits.
The new bill extends that to April 30, 2010 for have purchase agreements signed, and those sales must close on their new property by June 30. It also gives an opportunity of up to $6,500 tax credit for homebuyers who have lived in their current homes for at least five years, but are now buying a new one.
The credit facility would be extended for another year, until June 30, 2011, for members of the military serving outside the United States for at least 90 days.
Now although this may not apply to most of us, those who qualify for the incentive are people with an annual income of up to $125,000 or couples earning $250,000 which is an increase from $75,000 and $150,000, respectively, from the current tax credit. However, the credit can only be used for the purchase of homes that cost $800,000 or less and not for to vacation or second homes.
A Republican Senator from Georgiam Johnny Isakson, states that the consumers need to take advantage of the credit while it lasts.
“This is the last extension of the home buyer tax credit, and I urge all Americans whether they’re first-time buyers who’ve always dreamed of having a home of their own or someone who’s been gridlocked in the failure of our move-up market to take advantage of this opportunity,” he added.
Also, the fact is that we the tax payers are paying for it, so you can bet I am going to try to take advantage of it before it ends.