Larchmont Real Estate

This afternoon, the president signed a bill that included a new tax credit for both first-time and repeat homebuyers.  This new legislation is very positive news, and will help stabilize the economy and allow even more Americans to invest in homeownership.
The new tax credit is an improvement over the existing one which expires on Nov. 30.   Some of the enhancements it includes are:

• The $8,000 tax credit for first-time buyers has been extended through April 30, 2010.
• Current homeowners are eligible for a $6,500 tax credit through April 30, as long as they have lived in the home they are selling as a principal residence for five consecutive years out of the last eight years.
• Time has been added to allow for closing the home purchase. As long as buyers have a binding contract by April 30, they will then have until June 30, 2010, to close the transaction.
• Income limits for eligible buyers were increased to $125,000 for single buyers and $225,000 for couples.

The passing of this legislation is very positive news for anyone looking to buy or sell a home. Both first-time and move-up buyers can now take advantage of the new tax credit in addition to today’s historically low interest rates.

First-time homebuyers have been getting tax credits of up to $8,000 since January as part of the economic stimulus package enacted earlier this year. But with the program scheduled to expire at the end of November, the House voted 403-12 Thursday to extend and expand the tax credit to include many buyers who already own homes. The Senate approved the measure Wednesday, and the White House said President Barack Obama would sign it Friday.
Buyers who have owned their current homes at least five years would be eligible for tax credits of up to $6,500. First-time homebuyers — or anyone who hasn’t owned a home in the last three years — would still get up to $8,000. To qualify, buyers in both groups have to sign a purchase agreement by April 30, 2010, and close by June 30.