Time is Ticking on Extended Version of Home Buyer Tax Credit

To the joy of many homebuyers the First-Time Homebuyers Tax Rebate program was extended last November with a new deadline of June 30, 2010. But if you’ve been waiting for the spring crop of available houses, you could be waiting too long. The revisions to the program specify that homebuyers who want to get the rebate need to have a house under contract by April 30th. Closing papers must be filed by the June 30th deadline.

Okay, maybe it’s still only February, but the last thing you want to do when buying a home is to rush to meet a deadline. Finding a home you’ll be happy with takes time. Getting a rebate on your purchase isn’t something you should let slip by.

Now, let’s review the requirements for the Rebate once more. Pay attention because even if you you didn’t qualify for the first version of the program you may qualify for the extended version.

$8,000 for First-Time Buyers

  • Place a new or used home under a binding contract between Jan. 1, 2009 and April 30, 2010.
  • To be considered a First-Time Buyer you must not have owned a principal residence in the last three years.
  • Rebate value equals 10% of the purchased home value, up to $8,000.
  • Income limits for sales after November 6, 2009 are $125,000 if you are single, $225,000 for couples filing jointly. If you earn more, the rebate amount is reduced. If you earn $145,000 (single) or $245,000 (joint) you won’t get a rebate at all. If you earn something between these amounts your rebate will be reduced proportionately.
$6,500 for Repeat or Move-Up Buyers

  • You must have owned and lived in your home five of the past eight years.
  • Rebate is equal to 10% of purchased home’s value up to $6,500.
  • The new purchase value cannot exceed $800,000
  • Same income limits as the First-Time Buyer program

Remember, this is a rebate program, not a loan. However, if you should sell the house or you do not use it as your primary residence within three years after purchase, you will be required to repay the money.

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