The $8,000 tax credit has passed the House and Senate and is now awaiting Obama’s signature. Now buyer’s who have been rushing to purchase their first home don’t have to rush, they will now have until April 30, 2010 to get a purchase agreement in place and will have until June 30, 2010 to close. The new legislation also increases the income limit for couples to $225,000, a nearly $55,000 increase over current limits.
In addition to the first time homebuyer credit, this legislation also contains a maximum $6,500 tax credit to homebuyer’s who have lived in their current residence for five of the prior eight years. The legislation limits eligibility for the existing homeowner credit to homes worth $800,000 or less.
The legislation takes effect December 1st and is not retroactive. Both credits are available only for primary residences, not second homes or investment properties.
Stay tuned for further details!!!