Home Buyer Tax Credit Extended and Expanded

The Federal Government has extended the First Time Home Buyer Tax Credit for transactions that close before April 30, 2010.  They have also created a new credit for current homeowners for the purchase of a home! This credit also expires April 30, 2009.

The First Time Home Buyer Tax Credit is for 10% of the purchase price of a new home, with a maximum credit of $8,000.

The tax credit for current homeowners who purchase a home before April 30, 2010 is a maximum of $6,500.

You can recieve these funds before you file your 2009 income tax return by filing an amended tax return for 2008, see your tax advisor for details.

In order to qualify for either of these tax credits your purchase must close before April 30, 2010.  Real estate transactions take time to close, usually a minimum of 30 days.  If you are purchasing your new home with a Rural Development, VA or FHA loan, it can take 45 to 60 days.

If you are using a conventional loan - you must sign your purchase agreement by March 30, 2010.

If you are using an FHA, VA or Rural Development loan, you must sign your purchase agreement by March 16, 2010.

You must sign your final closing documents by April 30, 2010.