The home buyer tax credit ,which is part of a larger bill that also extends unemployment benefits. has been approved by both houses of Congress and signed by President Obama.
First-time home buyers are still eligible for tax credits of up to $8,000. Buyers will now have to sign a purchase agreement by April 30, 2010 and close by June 30.
The new program will also expand the tax credit to include existing home owners who have owned a home for at least five of the last 8 years will be able to apply for tax credits of up to $6,500 when they purchase their next home.
The maximum price on a home will be $800,000 and vacation homes are not eligible.
The National Association of Realtors says that so far, about 1.4 million first-time homebuyers have qualified for the program and they estimated that 350,000 of these buyers would not have otherwise purchased.
The tax credit will also be extended for another year for military personnel serving outside of the United States until June 30, 2011.
Senator Johnny Isakson, who heavily pushed for the extension, along with his own version that would have increased the credit to $15,000 stated, “this bill will help us boost what is the real problem in the U.S housing market today and that is what is called the move-up market.”
Today we got something to help the move up buyers that should help jump start that segemet of the market as well as the first time buyer market.