New Facts About Home Buyer Tax Credit

Sacramento, CA

It’s Veteran’s Day and I want to thank all those who sacrificed their lives for us each of us and those that continue to help make this Country free.  Give a Veteran a hug today and thank them.

Until the President signed the bill to extend the Home Buyer tax credit, it was merely speculation and wishful thinking on our part. Friday, November 6th, President Obama signed the bill extending the current $8,000 home buyer tax credit until April 30, 2010.

The caveat to this date is that if you have a ratified contract in place on April 30, 2010, then you will have until July 1, 2010 to actually close and be eligible for the tax credit.  Also, if you file your income tax separately then, there is a $4.000 tax credit.

Also, any home buyer who is a current homeowner and lived in their home ( used as their primary residence) for 5 years of the past 8 years can also get $6,500 tax credit.

Many of the home buyers  worked with did not qualify for the tax credit due to their income, however this too has changed.  Now, a home buyer’s income can be as high as $125,000 per person and $225,000 for couples.

There is a cap on how much the house or condo the home buyer is purchasing and that cap is $800,000

Remember to attach the HUD statement to your tax return as this will serve as proof  of your home purchase.

Click for chart explaining the Home buyer Tax Credit showing the difference in the previous tax credit and what is part of the new tax credit bill provided by the National Association of Realtors.

So, don’t delay…get your PreApproval letter from your Lender and let’s get started.  If you’ve talked to any home buyer in the past year, then you know it takes an incredible amount of time to get a house these days.   Now, is your time to become a homeowner.

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If you have a real estate question that you would like an answer to by Gena Riede, Sacramento Realtor ® specializing in helping home buyers and home sellers be sure to check out and read what other home buyers and home sellers have asked and feel free to ask your Real Estate question by email.