Yes, the first-time home buyer tax credit has been extended and expanded. Sellers: be ready for a whole stampede of homebuyers bidding up your home. Buyers: you can take a deep breath of relief, but don’t wait too long, as the extension only brings more homebuyers to the market.
How is this tax credit extension different than last time?
Three things:
1. Existing homeowners can get a tax credit on a new house for up to $6,500.
2. Income limits rose to $125,000-$145,000 for individuals or $225,000-$245,000 for couples filing joint returns.
3. The tax credit now ends on April 30th, 2010.
However, just because there’s been an extension – don’t procrastinate, as there won’t be another one anytime soon. Interest rates also won’t stay low forever, so lock in before it goes up. Keep in mind that while there are many houses on the market, the tax credit will bring an even larger crowd of people into the market as well. The houses in great condition that are a true steal will definitely not stick around forever – so start looking today.
Lastly, short sales are often fantastic bargains, but because you have to wait for third party approval – it may take months to just find out if your bid was accepted. So while April may seem like a ways away, the truth is finding a house takes quite a bit of time, especially if you’re working with bank owned. For more information on buying a home, check out this article on marketwatch.com.
WE WANT YOUR FEEDBACK
Hi Jessica,
Correct. The $8,000 is for first time buyers, while the $6,500 is for existing homeowners who have lived in their current home for over 5 years. I’m really sorry about that.
We have lived in our home for more than 5 years, and it was our first home. But, we have taken advantage of lower rates and refinanced several times. Do we still qualify for the tax credit? Does having a second home change anything?
We purchased our home in Feb. of 2008. I know we don’t qualify for the 6500.00 or the 8000.00 right? Seems like we missed out on both advantages.
Hi Beverly,
No, unfortunately you would need to own your home for at least 5 years to qualify. However, if you’re only a few months away from the 5-year mark, then you could definitely get the tax credit in time as you have 5-6 months to find a house.
Hi Walter,
Also, please let me know if you’d like to speak to one of our bankers for more information on your specific situation.
After the 5 year mark, you would qualify for the tax credit of up to $6,500. So if you’re interested in upgrading to a new home, start looking
Hi Miklos,
Unfortunately, the tax credit only applies to homeowners who have lived in their current home for at least 5 years. So it seems that in your case, it would not apply. However, please let me know if you have any other questions and I would be happy to have one of our bankers assist you. Thanks.
If you currently own a home…for 4 years….can you qualify for the $6500?
I have owned my home for 5 years as of the 15th of this month. How is this credit applicable to me?
If i purchased a new home in aug of 2006 and previously owned a home would i qualify for the 6500 tax credit or did i need to live in current home for at least 5-years,i have owned three homes in the last 34-years.
Thanks Miklos