No Need to be a "First-Timer" to Qualify for the New Home Buyer Tax Credit

The current first-time home buyer tax credit, which expires on November 30th, has been extended through April 30, 2010 by Congress, It has also been expanded to cover those who in many cases may already own a home.

The new legislation expanded eligibility for the home buyer tax credit to include people with higher incomes and those who have already owned a home for at least five years so long as they sign a purchase contract by April 30, 2010 and close on the purchase by June 30, 2010.

The $8,000 maximum first-time buyer tax credit will continue and now be available to individuals with incomes up to $125,000 and couples with annual incomes up to $225,000. Home buyers with incomes up to $145,000 and couples with incomes up to $245,000 will be eligible for reduced tax credits.

Under similar income limits, a $6,500 maximum credit will be available to many families who already own a home and presumably wish to move up to a larger home.

Under the new income limits, two-thirds of all American families who own their own home may be eligible to buy a new home. While buyers will not be required to sell their current home to qualify for the new tax credit, the money must be used to buy a new "primary residence", not a vacation home or investment property.

To exclude from the program speculators who might purchase a home intending to flip it for a fast profits, people who claim the tax credit but then sell the home or no longer use it as their primary residence within three years will be required to repay the credit.

Here's a "heads-up" to those who may have considered buying a first home under the prior program but didn't get around to it.

"Contact a Realtor and get started now. This great deal ends on April 30, 2010."

Legislators in both houses of Congress have indicated that this costly program will not be extended a second time. Critics point out that only about 1/4 of the homes purchased under the prior program would not have been bought anyway without the costly tax-credit program. There are also concerns that the original first-time buyer credit program included high numbers of fraudulent transactions. In this version of the program, the Internal Revenue Service has been given much wider authority to oversee the process to root out fraud.

For more information on homes for sale in the Sarasota real estate market, including Bradenton and Lakewood Ranch, as well as our Island Keys of Longboat, Siesta and Lido Key, I invite you to request my free Sarasota Home Buyer Information Package or call me directly at 941-228-2321 or at my Sarasota RE/MAX Office at 941-360-7777.