Published: Oct. 29, 2009
By Steve Cook Real Estate Economy Watch
Senate Majority Leader Harry Reid (D-NV) and Chairman of the Senate Finance Committee Max Baucus (D-MT), engineered the deal to include move-up buyers in the homebuyer tax credit.
A deal struck among key senators last night to extend the homebuyer tax credit will broaden the benefit to include existing homeowners who are buying a new home as well as first-time homebuyers.
Tax credit for move-up buyers will be less than for first-time buyers, but still significant. They will qualify for a credit of up to $6,500 and must have owned their current homes at least five years. Under the current program and the new one for 2010, first-time buyers qualify for up to $8,000 and cannot have owned a home for the past three years.
Income limits would rise under the new proposal. Individuals would have to make less than $125,000 a year and couples $225,000 per year to qualify. Under the current program, limits are $75,000 for individuals and $150,000 for couples. Move-up buyers will be subject to the same income limits as first-time buyers.
For a consice summary of the current tax credit, visit http://www.federalhousingtaxcredit.com/2009/faq.php or contact your current FHA, VA, USDA, Jumbo Lender in Texas.
Tags: first time home buyer, tax credit