As expected the $8,000 first time buy tax credit has been extended by the federal government. The tax credit will apply for all home sales closed January 1 through April 30, 2010 and will also apply to sales that close by June 30, 2010 as long as they are under contract by April 30, 2010. The $8,000 tax credit is only for buyers who have not owned a principal residence for the last three years, but now there is a $6,500 tax credit for a buyer that has owned their own home. The maximum allowable income is the same, $125,000 for a single person and $225,000 for a married couple. Just as for first timers there is a maximum purchase price of $800,000. The move-up/repeat program requires that you have lived in your home for 5 consecutive years of the last 8 and are buying and moving into your new principal residence. There are no requirements that you must buy a home of equal or greater value, just no transactions between family members allowed. Hopefully many home owners will find this tax credit to be the extra motivation they need to move into the house or neighborhood they always wanted or maybe just downsize.
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