Wednesday, November 18, 2009

Extension of homebuyer tax credits now law

President Obama signed a measure today that includes an extension of the $8000 first homebuyer tax credit that was set to expire at the end of November. In addition, the bill creates a $6500 tax credit for homeowners who purchase a new residence.

The $8000 tax credit is open to new homebuyers through April of 2010. To be eligible, first time homebuyers must have an income of not more than $125,000 for individuals and must be acquiring a home for $800,000 or less. The IRS will have increased ability to recognize and stop fraudulent use of the tax credit.

The $6500 tax credit is available to those who would like to acquire a new home after having occupied their current residence for at least five years. This credit could be claimed by those with a closing date of Nov. 6 or later.

The $24 billion bill has substantial momentum due to the inclusion of jobless benefits that extend the amount of time individuals can claim unemployment by up to twenty weeks

This is awesome news for anyone who was thinking about selling their existing home and for first time buyers to have another shot of finding their first home!! For sellers who are selling their existing home the $6,500 can help you in a couple of different ways. For example: If your losing a little on your current home, If you need help with a down payment or closing costs on the second home or to pay off debt.

Call Molly Hay today for further details! 614-581-2086