Who Qualifies for the Extended Credit?

• First-time home buyers who purchase homes between November 7, 2009 and April 30, 2010.
  
• Current home owners purchasing a home between 11/7/09 - 4/30/09, who have used the home being sold or vacated as a principal residence for five consecutive years within the last eight.

        To qualify as a “first-time home buyer” the purchaser or his/her spouse may not have owned a residence during the three years prior to the purchase.

Which Properties Are Eligible?

        The Extended Home Buyer Tax Credit may be applied to primary residences, including: single-family homes, condos, townhomes, and co-ops.

How Much Is Available?

The maximum allowable credit for first-time home buyers is $8,000.

The maximum allowable credit for current homeowners is $6,500.

How is a Buyer's Credit Amount Determined?

Each home buyer’s tax credit is determined by tow additional factors:

1. The price of the home.
2. The buyer's income.

Price

        The Extended Buyer Tax Credit, credit may only be awarded on homes purchased <$800,000.

Buyer Income

        Under the newer Tax Credit, effective 11/7/09,  single buyers with incomes up to $125,000 & married couples with incomes up to $225,000—may receive the maximum tax credit.

If Buyer(s)’ Income > Max Limits, Can we still get a Credit?

Yes, some buyers may still be eligible for the credit.

        The credit decreases for buyers who earn between $125,000 & $145,000 for single buyers & between $225,000 & $245,000 for home buyers filing jointly.  The amount of the tax credit decreases as your income approaches the max limit.  Home buyers earning more than the max qualifying income—over $145,000 for singles & over $245,000 for couples are not eligible for the credit.

Can a Buyer Still Qualify If He/She Closes 4/30/10?

        Under the Extended Home Buyer Tax Credit, as 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.

Will the Tax Credit Need to Be Repaid?

        No.  The buyer does not need to repay the tax credit, if he/she occupies the home for 3 yrs or more. However, if the property is sold during this 3 yr period, the full amount credit will be recouped on the sale.

• Tom owned a home in 2001 and 2002 but sold it to relocate for a job.  He would qualify for the $8,000 first-time-buyer credit because he has not owned a home in the past three years.

• Mary purchased a home in 2004 & has lived there since.  If she decides to buy a new home, she would qualify for the $6,500 tax credit because she has lived in the same residence for five consecutive years in the past eight.

• Linda purchased her home in 2002, lived there for five consecutive years before she rented it out in 2007. She would qualify because she was an owner/occupier for at least five consecutive years in the past eight.

• Scott purchased a home in 2006 and lived there for the past three years.  He would not qualify because he is neither a first-time homebuyer nor someone who lived in the same primary residence for five consecutive years out of the past eight.