Today the $8,000 First-Time Home Buyer Tax Credit was officially extended six months to April 30, 2010. A new $6,500 Home Buyer Tax Credit was also enacted as a part of the bipartisan bill signed into law by President Obama today.

The $8,000 First-Time Home Buyer Tax Credit was set to expire at the end of this month. The deadline has now been extended. Home buyers have until April 30, 2010 to sign a purchase contract and must close on the home by June 30, 2010.

The new legislation also introduces a $6,500 Home Buyer Tax Credit for current homeowners looking to buy a new home. To qualify, the home buyer must have lived in their current home for at least five consecutive years and the new home must be the buyer’s primary residence. This $6,500 tax credit for “step-up” buyers begins December 1. The same contract and closing deadlines apply to both tax credits.

Income limits for the tax credits are $125,000 for single home buyers and $225,000 for couples (up from the previous income limits for the First-Time Home Buyer credit). Home buyers must attach proof of their new home purchase to their tax return in order to receive the tax credit.

For more information, including eligibility requirements and FAQs, please visit www.federalhousingtaxcredit.com.

Categorised in: Houston Real Estate, Sandcastle News

This post was written by Sandcastle Homes