President Obama signed the popular $8,000 First Time Home Buyer tax credit into law last Friday, November 6. That comes as a sigh of relief for the many first time home buyers who haven't yet found the perfect property or are waiting to hear back on a short sale approval from an underlying bank. The extension is particularly helpful for those looking to purchase a short sale since buyers only have to be under contract by April 30th, 2010. Buyers will then have an additional 60 days to close.
The Tax Credit was also amended to include move-up buyers who've been in their current home 5 consecutive years or longer. Those eligible buyers will receive a $6,500 credit, as opposed to the $8,000 for first timers.
Income limits were also increased, a welcome change, from $75,000 to $125,000 for individuals and from $150,000 to $225,000 for couples. Additionally, the home being purchased must not be over $800,000.
The real estate industry expects this to give a great boost to the housing market locally. Local Realtors are especially excited about the buy up credit. It gives current homeowners, our proven mortgage holders, extra incentive to buy again.
The Real Estate and Mortgage industries alike expect increased activity from the tax credit extension and urge potential buyers to capitalize on their window of opportunity.
For more information visit the tax credit official site: http://http://www.federalhousingtaxcredit.com/
