Enticing news out of Washington this week!
Anyone thinking about buying a home?
Under the government’s economic stimulus package, first-time home buyers were getting tax credits up to $8,000 since January. Because the program is set to expire at the end of this month, the Senate voted on Wednesday to extend and expand the tax credit to also include buyers who are not first-time homeowners.
New home buyers who have owned their current homes at least five years would be eligible for tax credits of up to $6,500. First-time home buyers — or anyone who hasn’t owned a home in the last three years, would still get up to $8,000 in credit. In order to be eligible, buyers in both groups have to sign a purchase agreement by April 30, 2010, and close by June 30.
The tax credit for home buyers is one of two breaks totaling more than $21 billion that the Senate included in the bill.
The National Association of Realtors estimates that 350,000 of 1.4 million first-time home buyers would not have purchased their homes without the credit. The real estate industry pushed hard to extend the effectual program.
The credit is currently available to purchasers of principal homes costing $800,000 or less – vacation homes are ineligible. The credit would be phased out for individuals with annual incomes above $125,000 and for joint filers with incomes above $225,000.
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