HOMEBUYER TAX CREDIT EXTENDED & EXPANDED
(UNEMPLOYMENT BENEFITS ALSO EXTENDED)

April 30, 2010 is an important new deadline for first time buyers and some who already own homes.  A new credit was added include people who have owned their present homes for five of the previous eight years.    First-time buyer credit remains up to $8000 ($4000 married filing separately).    The credit for those who already own their homes is up to $6500 ($4000)

The U.S. House of Representatives voted 403-12 on October 8, 2009 to extend jobless benefits and extend and expand the $8,000 first-time homebuyer tax credit to include many buyers who already own homes. The U.S. Senate approved the measure Wednesday.

The $6,500 credit for move-up buyers who have been in an existing primary residence for five of the last eight years is really what's getting the most buzz.   (Amount is $3250 for married filing separate.)   Income limits - $125,000 single, $225,000 married, with additional $20,000 phase out.  Limit on price is $800,000.   (Purchasers who have a written binding contract to purchashe in effect on April 30 will have until July 1, 2010 to close.)

The extension of the $8,000 tax credit for first-time homebuyers also takes some pressure off people who are really looking hard for a new home but couldn't make the original deadline, which was November 30, 2009.   Income limits for the first-time buyer program are $75,000 single, $150,000 married, with additional $10,000 phase out. 

If you qualify for one of these programs or know someone who might qualify, you probably realize that these are not just tax deductions, but actual reductions in tax due or  are a credit.   And they're not just for "starter homes", by the way, and although some income limits do apply, they are very generous.  

With today's exceptionally low rates, and with all the great choices available in Johnson City now, this extention  should make every renter decide this is the time to find their first home!   And if you've been thinking of downsizing and have been in your home for a while, here is additional incentive to get ready to move.   Call now.  

UNEMPLOYMENT BENEFITS ALSO PART OF PACKAGE:
The legislation extends benefits for 14 weeks for all those who have exhausted their federal aid or will do so by the end of the year.  Those living in states where the unemployment rate is at 8.5 percent or more get an additional six weeks.

The fourth extension passed by Congress in the past 18 months would stretch federal aid to a maximum of 99 weeks, well beyond the extent of government intervention during past economic downturns.