President Obama today signed the bill extending the $8000 First Time Home Buyers Tax Credit. 
Also include in the bill is a $6500 credit for “move up” buyers, those that have owned their home for at least 5 of the last 8 years. Additionally, this credit is extended for 1 year to those in the military serving at least 90 days overseas during 2008 & 2009. The chart below provides the details of the bill as well as any differences between the original and the new credits.
| FEATURE | Jan 1 – November 30, 2009 Rules as enacted |
December 1 – April 30, 2010 Rules as enacted |
| First time Buyer –Amount of Credit |
$8000 ($4000 married filing separate) |
$8000 ($4000 married filing separate) |
| Firsttime Buyer – Definition for Eligibility |
May not have had an interest in a principal residence for 3 years prior to purchase |
No Change |
| Current Homeowner –Amount of Credit | No Provision | $6500 ($3250 married filing separate) |
| Effective Date – Current Owner |
No Provision | Date of Enactment (November 6, 2009) |
| Current Homeowner – Definition for Eligibility |
No Provision | Must have used the home sold or being sold as a principal residence consecutively for 5 of the previous 8 years |
| Termination of Credit | Purchases after November 30, 2009. (Becomes April 30, 2010 on Date of Enactment.) |
Purchases after April 30, 2010 |
| Binding Contract Rule | None | So long as a written binding contract to purchase is in effect on April 30, 2010, the purchaser will have until July 1, 2010 to close. |
| Income Limits (Note: Increased income limits are effective as of date of enactment of bill) |
$75,000 – single $150,000 – married Additional $20,000 phase out |
$125,000 – single $225,000 – married Additional $20,000 phase |
| Limitation on Cost of Purchased Home |
None | $800,000 Effective Date of Enactment |
| Purchase by a Dependent | No Provision | Ineligible Effective Date of Enactment |
| Antifraud Rule |
None | Purchaser must attach documentation of purchase to tax return |
One of the most significant changes in these credits is the binding contract provision. Buyers now have up until the end date of eligibility to enter into a binding agreement on a home purchase. They then have another 60 days to close. This will alleviate any stress on the lenders trying to get expedited contract closings.
For more information on the home buyers tax credits, for information on getting your self ready to purchase a home, or, for my 99 Tips for Getting Your Home Ready to Sell, please call me at 706-207-5290. Or you can email me with your questions or requests.
If you are interested in buying or selling a home, land or any other type of real estate in Athens, GA and the surrounding counties in N.E. Georgia, please call me or email me. If you would like to search for real estate in and around Athens and N.E. Georgia, please visit my website, The Athens Real Estate Page.
Your real estate success is my job, and I do love my job!
