If you’re a first time homebuyer and you thought that you might be out of time when it came to getting the $8000 refundable tax credit, think again! On Friday the Obama administration signed into law the Worker, Homeownership, and Business Assistance Act of 2009 which extends the $8000 refundable tax credit through the end of June of 2010. If you had given up looking for a house, it may be time to restart your search!
$8000 First Time Home-buyer Tax Credit Extended
The new law was agreed upon by Congress last week, and then signed into law by President Obama at the end of the week. The extension of the tax credit does mean that there are a few changes in the provisions, including higher income limits, age restrictions and limits on home values.
- The credit is available for homes that go under contract by April 30, 2010 and close by June 30, 2010.
- First-time buyers (those who have not owned a home for three years) can continue to claim an $8,000 credit.
- Income limits: $125,000 a year for individuals, $225,000 a year for married couples. (an increase in income limits)
- Homes that cost more than $800,000 aren’t eligible for the credit.
- You must be 18 years old to claim the credit.
- Credit is available for primary residences only (no vacation homes)
$6500 Move-Up Homebuyer Tax Credit Passed
In addition to the first time homebuyer bill being extended, Congress also decided to expand the incentives for homebuyers by allowing some current owners to take part as well. Current homeowners can now buy a new home and receive a $6500 tax credit. Details of the new incentives here: $6500 homebuyer tax credit.
What do you think of the tax credit being extended? Are you relieved because you just missed the deadline before? Are you upset because you’re against the credits? Tell us your thoughts on the tax credit extension and expansion in the comments below.
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This was very ironic because my wife and I put our house up for sale on October 29th just to test and see if the 1st time buyers tax credit would help us sell our house. At the time the cut-off date was still 11-30-09. We still sold in two days.
That’s a tough call. I am against the Obama administration trying to spend their way out of this recession, and I think that the one of the reasons why it was expanded and extended was when it came to light all of the manipulating and outright scamming that was going on.
However, I have a lot of friends who have benefited from it, and I would have to say that I would be hard-pressed to turn it down if I were buying a house right now.
Guess it all depends on your particular situation
This is the first Christian PF blog where buying the Mcmansion for the Mcchristian is condoned, of all things. I am all for getting the best school and safest neighborhood your finances can afford, but the house itself becoming the loved family home should be the goal–not the King of the Hill on the block. I am sick of Christianity trying to be “better than” .
Not sure where you are getting the idea that this blog is condoning buying a mcmansion, or condoning the idea that we should buy a home just to be “better than” or to have the best on the block? In fact, I believe that you should only buy a house that you can afford that is no more than 25% of your take home pay, and only buy when you have a 20% down payment on hand. Buying a big home just to be better than others or to show off your wealth is a losing battle that will leave you in the poor house.
Buy a home that fits your needs and especially your budget, and then save and more importantly give the rest!
Sorry, this belonged in the Keep Down with the Joneses article. I stand by my response.
Moving the comment to the other post. I didn’t write that particular article -and am asking the author to respond.
AFTER READING THE ARTICLE, THE ONLY ONES HAVING ANYTHING POSITIVE TO SAY ARE PETER ANDERSON AND TORREY. IF THIS CREDIT DID NOT COME IN TIME FOR YOU TO BENEFIT, ITS OKAY, YOURS WILL COME SOON. I AM HAPPY FOR MY SISTER SHE’S 50YRS OLD. SHE’S WORKED VERY HARD AND WAITED A VERY LONG TIME. I THOUGHT IT WAS IMPOSSIBLE. GOOD NEIGHBORHOODS AND GOOD SCHOOLS ARE ALSO A LUXURY THAT SOME CANT AFFORD. BUT IF YOU HAVE THE ABILITY AND THEN INTELLIGENCE THEN YOU THANK GOD, THANK THE PEOPLE THAT HELPED YOU TO GET THERE AND YOU MOVE ON RESPONSIBLY. HOPEFULLY YOU CAN IMPACT ON SOMEONE IN YOUR PATH IN RETURN.
Dont get me wrong this is great for first time buyers but giving $8000 tofirst time buyers is 90% of the time just going to benefit those who were thinking of buying an house anyway. I mean $8000 is nice but a mortgage is a huge commitment and considering the economic climate not many people are willing to commit or have the funds for it.