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Facts About The

Federal Homebuyer Tax Credit Expansion & Extension

The United States Congress has passed a bill that extends and expands the Federal

Homebuyer Tax Credit, and the President signed it into law on Friday, November 6th,

2009. Here is a brief overview of the program:

• The current $8,000 federal tax credit for first-time homebuyers is extended to April 30, 2010.

• And now, buyers who have owned and resided in their current home for any 5-consecutive year

period during the last 8 years prior to purchase of a new home would be eligible for tax credits of

up to $6,500.

• To be eligible to claim the $8,000 credit, first-time buyers must enter into a written binding

contract for purchase before May 1, 2010 and must close on the purchase before July 1, 2010.

• To be eligible to claim the $6,500 credit buyers who have owned and resided in a home for

any 5-consecutive year period during the last 8 years, must close after the date of enactment

(November 6, 2009), and prior to July 1, 2010.

• To qualify for either credit, the price of the home being purchased cannot exceed $800,000.

• The new law will increase the income ceiling for qualification from $75,000 to $125,000 for

individual taxpayers.

• And the income ceiling for qualification increased from $150,000 to $225,000 for joint filers.

• The credit would be extended an additional year, until June 30, 2011, for members of the military

serving outside the United States for at least 90 days.

• “This is probably the last extension,” said Senator Johnny Isakson of Georgia, a former real estate

executive who championed the credits.

Carryover Provisions

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Real Estate Tips

Homebuyers Should Hire an Inspector 

Homebuyers are urged to conduct an inspection even if the home comes with a warranty. They should also ensure that their inspector has plenty of experience and abides by the membership requirements of the American Society of Home Inspectors or other trade groups.  

Home Warranties Warrant Close Attention  

Warranties can help make homebuyers more confident about the quality of their new dwellings.  

Flaunt Your Home's Curb Appeal 

When selling your home, curb appeal is essential, because it can create a first impression of your home.  

Too Much Insurance is Better Than Not Enough 

Research shows that 64 percent of the nation's homes were about 27 percent underinsured in 2003. But owners can ensure that they have adequate coverage by updating their policies to account for changes in replacement value.  

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