President Obama signed the $8000 tax credit extention this past week. The new program ends April 30th. As in prior programs, first time home buyers are classified as never owning a home ,or have not owned one in 3 years. In addition, the program added a $6500 tax credit for the seller of a home when they purchase another one. The seller must have been living in the home for at least 5 years as their primary residence. It takes a little longer to close on a sale and have it funded. For this reason, prospected buyers with a binding agreement before April 30th, will be granted an additional 60 days to complete the transaction. The income limits have been expanded to $125000 for a single taxpayer and $225000 for a joint return. In the transactions I have had with the qualified buyers of the program, most of the stimulus monies go right back into the economy in the form of enhancements to the homes. Whether new appliances, better windows, more efficient heating and cooling, or new funiture, the program, in my opinion works. I love helping first time home buyers see the value in home ownership. This tax credit helps with the added demands of home ownership. Home prices are low and the mortgage rates low. There are buyers still on the fence with this hugh decision of buying a home. Have them talk to a loan officer first and then to a realtor.
