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First Time Homebuyer Credit Extended AND expanded!!

Well, the word is out!!  All of our campaigning - calling senators and goverment officials, writing our letters, etc has finally paid off!  The  First Time Homebuyer Tax Credit that was due to expire Nov 29, 2009 has been extended and expanded.  This credit will actually end and a new one will begin the very same day.  The expanded one will actually  include current homeowners as well! 

If you have not owned a home in the past 3 years, you qualify for the $8,000 FTHB tax credit.  You must be under contract on the purchase by 4/30/10 but have all the way up until 7/1/10 to actually go to settlement. 

You can qualify for a $6,500 tax credit if you sell your current home and purchase another principal residence in it's place.  This credit qualifies for a "move-up" house or a house that costs less than your current house. The main stipulation here is that it MUST be your primary residence for 5 consecutive of the previous 8 years. The same dates as the FTHB credit apply here. 

For both credits, you can purchase a home up to $800,000.  The income limits are $125,000 for a singel person and $225,000 for a married couple.

For the fraud protection, proof of your purchsae MUST be attached to your tax return to receive the credit.

These are wonderful credits - don't miss the opportunity to take advantage of them yourself! Contact us at www.thefoxteam.net or call Denise 301-367-8118 with any questions at all!

Comments

Larry Walker said:

"The same dates as the FTHB credit apply here."

Do you mean if the current home was sold and the new house was purchased before November 29th that the credit still counts?

# November 17, 2009 9:19 PM

Denise Fox said:

Hi Larry,

No I don't mean that it needs to be done by Nov 29th.. What I meant to say is that the new deadline for the FTHB credit of April 30 also apply to the move up credit of $6500.

In other words, if you write an offer to purchase your new home by April 30, you may qualify for the $6500 credit. You do have until July 1 to actually settle but the contract must be in place and ratified by April 30, 2010.

# November 30, 2009 10:53 AM
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