First Time Home-Buyer Tax Credit Extended

Yesterday saw unanimous support in Senate and overwhelming support in the House for an extension of the First Time Home Buyer Tax Credit. Here’s a quick summary of the bill that the President is expected to sign today:

• First time home buyers must have a sale agreement in hand by April 30 and close escrow by June 30, 2010 and would get the full $8,000
  
  
• NEW ADDITION: CURRENT HOMEOWNERS looking for a new home could also qualify for a $6,500 credit if they have lived in their existing PRIMARY residence for at least FIVE (5) YEARS
  
  
• CHANGE IN INCOME RESTRICTIONS: The home buyer's credit would be available to: individuals with earnings up to $125,000; or $225,000 for couples. This is up from $75,000 for individuals and $150,000 for couples under the current law
  
  
• EXCLUSIONS FROM THE TAX CREDIT: Homes that cost more than $800,000 are NOT eligible and the buyer must be over the age of 18 years old to claim the credit. Those who SELL their new home or STOP USING IT AS THEIR PRIMARY RESIDENCE within THREE (3) years would have to REPAY THE CREDIT