Home buyer tax credit extension and potential expansion

Everyone’s been asking about the home buyer tax credit extension and potential expansion so I thought I would give you an update.

“The new compromise which will be part of the unemployment extension bill would extend the existing credit and create a new $6,500 credit for move-up buyers. Both types of buyers must sign a binding contract to purchase a new or existing primary residence between December 1, 2009 and April 30, 2010. Buyers would have until June 30 to close the deal.

Move-up buyers will be eligible if the home they are leaving has been their principal residence for five years or more.

The cost of the newly purchased home may not exceed $800,000 for new or move-up buyers. There is no partial credit for homes over $800,000.

Home buyers would not have to repay the credit as long as they live in the home as their principal residence for at least 36 months.

The income limits for all buyers would rise to $125,000 for single returns and $225,000 for joint returns, up from $75,000 and $150,000 respectively, under the current program.

The full Senate will probably vote on the unemployment extension bill, which includes the home buyer credit, next week. If it is approved, it will move to the Assembly”, which "could agree to the amendment or disagree and send it to a conference committee."

I will keep everyone updated on the progress of this bill, you can check the story out here.