President Obama Signs Extended Home Buyer Tax Credit
Friday November 6, 2009
Eureka. President Obama signed today the Extended Home Buyer Tax Credit legislation approved yesterday by Congress.
- The $8,000 home buyer tax credit is extended to April 30th, 2010, with another 60-day extension for those home buyers who have entered into a purchase contract by April 30th, providing it closes by June 30, 2010.
- Buyers who are not first-time home buyers can apply to receive a tax credit of $6,500, providing these buyers have owned and occupied a principal residence for 5 out of the last 8 years.
- Income levels for those who buy a home on or after November 6, 2009 is raised to $125,000 for a single person and $225,000 for a couple, with phase-outs above those levels.
I wonder if some buyers will now cancel existing escrows because they felt pressured to buy before November 30th? Some buyers might have settled for a home they did not truly want or avoided trying to buy a short sale home based on the expected expiration date of November 30th . . . read more about the Extended Home Buyer Tax Credit.
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Comments
I have found that our clients for our Australian Buyers Agents have also had to compete with many other first home buyers due to the government incentives for Australian First Home Buyers.
Hello Pino: I understand the Australian home buyer tax credit has no income limitations. While it’s nice that President Obama’s extension lets move up buyers, subject to criteria, participate in the program, the income restrictions aren’t high enough to stimulate the upper-end market.
My question is, If the situation is I bought a house with my husband in 2005 in SC. However, I haven’t lived there since June 2008 due to divorce. I moved back to TN at that time. Would I be able to qualify for any credit once my name is off the mortgage in SC?
Probably not because to qualify under the “first-time” rule, you can’t have owned a home for at least 3 years. For a second-time buyer, you have to live in your present home for 5 years out of the last eight. For more information, please talk to an accountant.
Regarding the existing home owner credit: can I still apply for it if I buy my new house before selling my old house?
I didn’t see anything in the law that says you have to sell your former home. And it does apply to second homes.
We lived in our first home from June 2002 until September 30, 2009. We signed a contract with our builder in June of 2009, but our new house will not be completed until December 1st. We had to move in with family for the months of October and November. We are within the income limits. Do we qualify for the tax credit?
That’s a good question. The law says you have to live in your previous home for 5 out of the last 8 years, so you qualify on that part. But I believe your contract needs to be dated after 11/6/09 to qualify. Plus, you would not get the $8,000 but instead you’d probably qualify for the $6,500 credit. You should check with your accountant to see if you rewrote the contract if that would qualify.
I think it does apply to second homes. It still qualify for the tax credit.
I bought a home Nov. 6th 2009. Do I qualify for the new tax break? I have heard no and yes. Can you help me.
Thanks, Judd Eidson
This IRS publication makes it look like it’s for homes that were purchased AFTER November 6, if you’re looking for the $6,500 credit. For the $8,000 credit, it doesn’t matter.
http://www.irs.gov/newsroom/article/0,,id=204671,00.html
We bought in Feb 2003. Short sold in Jan 2008. Subprime casualty. Been renting for almost 2 years. Paid off debt. Been good citizens. Trying to get back in. It seems both of these tax credits will elude us, correct? Not enough time past to qualify for the FHA, but we are 30 days short of qualifying for the stipulation of the 2nd time credit. Seems like there’s help for everyone but us. Am I missing something?
It sure looks like it, I’m sorry to say, since you don’t have the full 5 years of occupancy. And if you go conventional, after waiting 2 years, the down payment requirements will most likely be around 10%.
We bought a house in june 2006, and we foreclosed on it in june 2009 but we were able to buy another cheaper home in Febr. 2009 with one of our names, since the house we foreclosed was only under my husbands name. I was able to buy our recent house under my name. So my question is, Do I qualify for any of this tax credits? note, the house foreclosed on was in my name during the year 2006-2007, then it was changed and refinance under my husbands name only. and it was foreclosed under his name.. any help?
Probably not because you have owned a home in the last 3 years.