Extended Tax Credit, Expanded Too!

The latest on the first time home buyers tax credit is it will be expanded to include current home owners too.

The first time buyer is still eligible for the $8000 and income levels have been increased to $125,000 for a single buyer and $225,000 for couples. A buyer has to have a binding contract signed on or before April 30th, 2010. You will then have until July 1st, 2010 to close the transaction.

Current home owners are eligible for a $6500 tax credit. The house they are selling must have been their primary for 5 consecutive years out of the past eight years. Income, contract and closing dates are the same as the first time buyer. The part I had to laugh about is the purchase price of the new home can not exceed $800,000.

My opinion is that this credit for time buyers will help them get into a home now that homes are at their most affordable pricing in decades. This is based on income to cost ratio. I know there are many people out there that have the ability to pay a mortgage most often a payment that is lower than the rent they are paying. The only things missing was a large enough down payment. This is where the credit comes in. It helps that buyer get the down payment they need.

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