November 9, 2009

Tax Credit for First Time Home Buyers AND Repeat Buyers

UPDATED: July 2, 2010

The $8000 first time home buyer and $6500 repeat buyers federal tax credits have officially been extended. H.R. 5623 the Homebuyer Assistance and Improvement Act of 2010 was signed by the President, extending the deadline to close escrow on a qualified purchase from June 30, 2010 to September 30, 2010. The April 30, 2010 deadline to get "in to contract" remains the same. Buyers who will find this extension helpful include those with fully executed contracts dated prior to May 1st on short sale properties who are still waiting for the seller's bank to approve the contract.

UPDATED: June 28, 2010

The blogisphere is buzzing with claims the FTHB tax credit has been extended through September 30, 2010. Sorry to burst the bubble but it's not true ... at least for now. The Senate voted AND passed an extension of the FTHB tax credit but this provision is part of that HUGE Dodd/Frank financial reform and jobs bill that is all over the news these days. Congress still needs to vote on the entire package and it's not looking good for a vote before June 30th. Then the President has to sign it. So as things stand today, there is no extension. June 30, 2010 remains the last day to fund and close escrow on a qualifing purchase.


It’s official. The home buyer tax credit has been extended. Breathe in … breathe out … you now have until April 30, 2010 to get a purchase contract executed and qualify for the $8000 first time home buyer tax credit. If you’re already a homeowner (with some equity) and planning to buy up or downsize, you may qualify for the new $6500 tax credit. In either case, your escrow must close no later than June 30, 2010. Since Congress didn’t stretch this out for all of 2010, I wouldn’t plan on another extension. One more thing … the qualifying income limits have been raised significantly.

No need for me to reinvent the wheel. For all the details about both programs you have to check out this website. It has an awesome Q & A section.