Tax Credit Extension

In case you haven't heard, the President signed an expanded version of the $8000 First Time Home Buyer tax credit that has been the buzz of the real estate industry for the past 6-9 months.   The original tax credit was set to expire on November 30th, driving more buyers to the closing table during the last few months than during the same time period in recent years.  

The original tax credit was such a success in stimulating sales nationwide, that Congress and the White House agreed late last week to extend the deadline through April 30th of 2010.  In addition to the deadline extension, qualifying income limits were increased slightly and documentation requirements tightened.  Ive put together a free report with all of the details about the revised First Time Buyer Tax Credit. 

However, this time around they've sweetened the pot.  In addition to extending the credit for first timers, the legislation was expanded to include a $6500 tax credit for home buyers that have lived in their current primary residence for at least five consecutive years out of the past eight years.  Under the previous guidelines, move up home buyers did not qualify. 

Interesting tidbits:

- According to the National Association of Realtors, first time home buyers accounted for more than 45% of sales in the past year.

- According to a Goldman Sachs study close to 70% of all current homeowners would be eligible for the tax credit under the new expanded guidelines.