Home Buyer Tax Credit Extended and Expanded: The Details

The First-time home buyer’s tax credit of up to $8,000 should expire on December 1st, 2009 but will now be extended through April 30, 2010. The tax credit is also set to be extended for another year for military personnel, serving outside of the United States until June 30, 2011.

The program will also include existing home owners. The tax credit expansion is applicable to current homeowners, who are buying a new primary residence, only if they have owned their home for five consecutive years in the previous eight. Homeowners will be able to apply for tax credits of up to $6,500, when they purchase their next home.

To qualify, buyers will have to sign a purchase agreement by April 30, 2010 and close by June 30, 2010 unless in the military. The maximum purchase price on a home will be $800,000. Income limitations are $125,000 for single tax payers and $225,000 for joint filers.

Around 1.4 million first-time home buyers have qualified for the program, according to the National Association of Realtors. To read more on this story go to chinohills.com.