This past November, Congress expanded the first-time home buyer tax credit to repeat buyers. As a result, current homeowners who will have lived in their home for 5 consecutive years out of the last 8 may now be eligible to receive a $6,500 tax credit.
Today’s affordable housing prices, historically low interest rates and federal home buyer tax credit have combined to create one of the most attractive first-time buyer markets in recent memory.
What you might not realize is that a recent expansion of the
tax credit has created an equally desirable opportunity for existing homeowners!
To qualify for the tax credit as a repeat buyer, you must have signed a purchase contract by April 30, 2010 and close on the home by June 30, 2010. Tax credit eligibility is subject to income limits, $125,000 for single buyers and $225,000 for couples. The purchase price of your new home can not exceed $800,000.
There is no requirement that existing homeowners must have sold their home to be eligible for the $6,500 tax credit. In fact, you don't need to currently be living in that home, or even still own it!
I am working with a couple right now who are going to keep their current home as a rental and purchase their retirement home at historic low interest rates! They are purchasing a beautiful foreclosed property for many thousands less than the appraised value. And they will be receiving $6500 from Uncle Sam when they file their tax return! What a windfall of perfect circumstances for them!
Whether moving up or downsizing, you will need to act fast if you need to sell your existing home before purchasing another to qualify for the credit. The opportunity expires at the stroke of midnight on April 30!
Give me a call if you would like to explore your options. It would be my pleasure to assist you!