First Time Homebuyer Tax Credit Extended
November 7th, 2009 categories: Buyer Resource, Seller Resource
The $8,000 First Time Homebuyer Tax Credit has been extended. On Friday, November 6th, President barack Obama signed an extension of the very popular, and much needed $8,000 First Time Homebuyer Tax Credit.
The First Time Homebuyer Tax Credit was set to expire on December 1st, 2009, but the United States House, the United States Senate, and then President Barack Obama pushed through a bill extending the expiration date. So when is the expiration set for now? There are 2 deadlines basically, you must be in contract by April 30, 2010, and you must close the transaction by June 30, 2010.
Strategically, this is a great move, as it keeps the homebuying market moving. There are also some changes that benefit a wider range of buyers, and it is also good because I had predicted it in a past First Time Homebuyer Tax Credit Article, and it makes me look like I may know what I am talking about.
Are there any other changes to the First Time Homebuyer Tax Credit plan? Of course there are. Income limits were also increased. The new limits extend benefits to single buyers who earn up to $125,000 per year, and also married couples that collectively earn up to $225,000 annually. Also, even though this tax credit is designed to help first time homebuyers, the bill also extendeds a $6,500 opportunity for those who have owned and occupied a home in 5 of the past 8 years (Please Note: must be 5 consecutive years), allowing for those who want to trade up to do just that.
If the first tax credit had worked, would we need this one? If the first one did not work as well as planned, why will this one work? These are really good questions. The first tax credit did work, and locally, it would have worked better if we had more inventory. Many of our buyers over the past 6 months have been very curious about the First Time Homebuyer Tax Credit and how it affects them. Further, this plan will work because it keeps the momentum going, and also the new plan extends the tax credit to a couple new sets of buyers…those that earn more, and those that are looking to trade up into another home.
So what caused all of this to happen? Perhaps it was my Letter To Barack Obama? ummm…maybe. Perhaps it was the fact that not all Sonoma County Home Buyers were able to take advantage of the program initially? Ummm…maybe. Likely it was because we need it. The unemployment rate nationall just hit 10.2%, the highest level in 26 years. Locally, our unemployment is even high, above 12%. No matter the reason the First Time Homebuyer Tax Credit was extended it was, and we should all be thankful. This is an amazing opportunity, one that you should look into, and consider.
If you have any questions regarding the $8,000 Tax Credit, Sonoma County, or Sonoma County Real Estate, please feel free to contact us. We look forward to hearing from you.
