Innovative Real Estate Blog

So everyone has been talking about the much anticipated extension of the $8,000 First-Time Home Buyers Tax Credit.  Well it happen today and was signed off by President Obama.  However, the extension doesn't just benefit first-time buyers anymore, but yet a much more broad spectrum of potential buyers.  You will qualify if you sign a binding contract by April 30, 2010 and close by July 30, 2010.  Other than first-time home buyers, if you have owned a home as your primary residence for at least 5 consecutive years out of the last 8 years then you qualify.  Not only that but if have not owned a primary residence in the past 3 years then you also are viewed as a first-time buyer and qualify.

The even more exciting news is that the  income limits have also been raised.  For singles it's been raised from $75K with a $20K phase out to $95K to $125K with a phase out to $245K.  For married couple it went from a combined $150k with a phase out to $170k to $225K with a phase out to $245K.  This is for sure going to open the door up to a lot of people. 

So far out of all my clients this year about 25% of them bought solely based on the tax credit, which isn't that high considering all the hype.  How ever now, I think that's all going to change.  What do you think?

For more on this as well as frequently asked questions visit First-Time Home Buyers Tax Credit.