$8000. Tax Credit for Buyers 

The Senate passed HR 5623 which extends the mandatory closing date to qualify for the homebuyer tax credit.

The contract deadline does not change - homebuyers must have a contract signed by April 30, 2010 (an exception for active duty military) - but the previous closing deadline of June 30, 2010 has been extended to September 30, 2010. 

President Obama signed into law a bill to extend and expand the homebuyer tax credit for active duty Military.  The bill will extend the $8000 First-Time home buyer Tax Credit and provide a $6500 tax credit to military homebuyers with an existing home wanting to purchase another primary residence. 

Active duty or prior active duty military must be under contract on a home by April 30, 2011 and then you have up to 60 days after that to close the transaction.  The program has been extended one year, only for military personnel who were deployed out of the country for more than 90 days from December 31, 2008 and ending May 1, 2010. These military can buy a home up to April 30, 2011 and then obtain the first time or second time buyer tax credit. 

Current military homeowners who buy a new or existing home between May 1, 2010  and April 30, 2011 and have lived in their prior home for five continuous years will be given a tax credit up to $6500 on the purchase of their next home. 

This is great news, especially for military first time buyers. 

In summary the extended buyer program is as follows:This is a tax credit up to $8000 for first time military home buyers (people who have not owned a home in the past 3 years). 

The credit does not have to be paid back (if you keep the home for at least 3 years). 

The extended credit will now be available for homes under contract by April 30, 2011 and then closed within 60 days. 

Current military home owners purchasing a home between May 1, 2010 and April 30, 2011 who have used the home being sold or vacated as a principal residence for five consecutive years within the last eight, will be given a tax credit up to $6500 on the purchase of their next home. 

The extended home buyer tax credit may be applied to only primary residences, including: single-family homes, condos, townhomes, and co-ops.  

Multiple family homes may also qualify as long as the buyer occupies one of the units as their primary residence.  

The maximum allowable credit for military first-time home buyers is $8,000. 

The maximum allowable credit for current military  homeowners is $6,500. 

Each home buyer's tax credit is determined by two additional factors:

      1. The price of the home.      2. The buyer's income. 

PRICE:

Under the extended home buyer tax credit, credit may only be awarded on homes purchased for $800,000 or less. 

BUYERS INCOME:

Under the extended home buyer tax credit, which is effective on May 1, 2010 military single buyers with incomes up to $125,000 and married couples with incomes up to $225,000-may recieve the maximum tax credit. 

The credit decreases for buyers who earn between $125,000 and $145,000 for single buyers and between $225,000 and $245,000 for home buyers filing jointly.  The amount of the tax credit decreases as his or her income approaches the maximum limit.  Home buyers earning more than the maximum qualifying income-over $145,000 for singles and over $245,000 for couples are not eligible for the credit. 

For more information go to www.realtor.org  

This is probably the best time in 25 years to purchase a home, prices are down, mortgage rates are still reasonable and the tax credits are there to help cover some of the transaction costs after closing. 

Call me at: 904-608-5681 or e-mail: tomsells@bellsouth.net if you want to take advantage of this lucurative buyers market.  I will give you access to the MLS if you want to do your own searches for property and if you let me represent you as your realtor, I will provide you a one year home warranty on owner occupied property we purchase.  To be eligible to receive the home warranty you must mention to me you saw this offer on my web site before we start looking for property for you to purchase. In addition, the Home Warranty will not be available for " As is " or investment property.    

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