First time Home Buyers Credit explained

HOME TAX CREDIT EXPANDED AND EXTENDED!! 11/2009

EXPANDED HOUSING TAX CREDIT APPROVED BY BOTH HOUSES OF CONGRESS!!

(SeeDetails in Red Below!)

Lawmakers in the U.S. House of Representatives on Thursday voted 402-12 to approve an extension and expansion of the popular housing tax credit and, they hope, supporting the fragile housing market until the economy improves. The Senate passed the measure 98-0 Wednesday; the bill will now go to the White House, where President Obama is expected to sign it.

The tax credit approved today will take the housing market into the critical spring selling season.

To receive the credit, buyers must sign a purchase agreement by April 30, 2010, and close on the home by June 30, 2010. As was the case with the credit that has been in use for most of this year, the extended credit will provide first-time home buyers up to $8,000, depending on the price of the home and their household income.
But there are several important differences, too. The newly approved tax credit also covers people who have lived in their homes for at least five years; they can claim a credit of up to $6,500 if they purchase a new home. Finally, Congress raised the income limits on the program, which will now allow singles who make up to $125,000 and married couples with a household income of $225,000 to be eligible for the credit.

* MOL = More or Less