Home Buyers’ Tax Credit Extended for First Time Buyers and Long Time Owners

New legislations has just gone into effect extending the First Time Home Buyers’ Tax Credit and creating a new credit for long time home owners.

• Who is eligible for the tax credit?

  1. First time buyers

  •  
    • Buyers who have not owned a property for at least 3 years
    • Maximum income of $125,000 for single tax payers and $225,000 for married couples filing jointly for full credit.
    • May receive a credit up to $8,000 or 10% of the purchase price, whichever is less.
    • Purchase price of $800,000 or less.

   

  2. Current, long time home owners

   

  • Must have owned and resided in a residence for 5 years consecutively in the past 8 years.
  • If spouses, both spouses must meet this requirement.
  • New home does not have to be more expensive than previous home.

  • Purchase price must be $800,000 or less.

  • Maximum income of $125,000 for single tax payers and $225,000 for married couples filing jointly for full credit.
  • Maximum credit of $6,500 or 10% of the purchase price, whichever is less.

   

  • When must I purchase to qualify for the tax credit?

   

  1. First time buyers

   

  1.  
     • Must have a binding contract to purchase no later than April 30, 2010.
     • Escrow must close no later than June 30, 2010.

   

  2.   Move up,  repeat buyers
  

  •  
    • Must purchase after November 6, 2009.
    • Must have a binding contract to purchase no later than April 30, 2010.
    • Escrow must close no later than June 30, 2010.

   

  Click this link to learn about the NEW Huntington Beach First Time Buyer Program.

  Click this link to learn about Fountain Valley First Time Home Buyer Program.

  Interested in learning about other First Time Buyers’ experience with Christine Donovan?  See the video below.

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  About the author: Christine Donovan is a California Residential Real Estate Broker with experience in assisting clients buy and sell residential real estate.

  Click for a free list of Orange County foreclosures or a free list of Orange County short sales or e-mail Me! 

  Are you upside down in your home? Is it worth less than you owe? Are you concerned about making your mortgage payment? Contact me at christine@donovanblatt.com or 714-319-9751 to discuss your options.

  Want to buy a home or to list your property for sale in Newport Beach, Costa Mesa, Huntington Beach or Orange County? Contact me at christine@donovanblatt.com or 714-319-9751 to learn about her system which will make your buying and selling experience easier.

  Disclaimer: All information in this blog is deemed reliable but is subject to change at any time and is not guaranteed to be accurate nor are there any warantees either express or implied. This blog is not intended to offer any legal, tax or other advice.

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  Copyright © 2009 by Christine Donovan, All Rights Reserved. Home Buyers’ Tax Credit Extended for First Time Buyers and Long Time Owners