Homebuyers wanting to take advantage of generous Federal tax credits need to be aware of the looming deadline of April 30th, 2010; the date by which a homebuyer must be in contract to receive the credits. The program was extended and expanded at the end of 2009 to include a $6,500 credit for buyers who have owned their existing homes for at least five years and extending the deadline of an $8,000 credit for first time buyers.
First-time homebuyers have been getting tax credits of up to $8,000 since January of 2009 as part of economic-stimulus efforts. The program was set to expire November 30, 2009, but now both first-time and move-up buyers who sign a purchase agreement by April 30, 2010 and close by June 30, 2010 can take advantage of the credits.
The credit is available for the purchase of principal homes costing $800,000 or less, meaning vacation homes are ineligible. The credit would be phased out for individuals with annual incomes above $125,000 and joint filers with incomes above $225,000. The credit can be extended an additional year, until June 30, 2011, for members of the military serving outside the United States for at least 90 days. “This is a great opportunity for homebuyers who were unable to make the November 30th deadline, but people need to realize the new deadline is coming up fast and the program is very unlikely to be extended again with all of the deficit concerns,” said Dale Lovelace, sales manager for SCM Homes at Sherman Ranch. “We still have several new, move in-ready homes which are eligible for the program.” Since the program was announced in 2009, SCM Homes has sold nearly 40 homes. The tax credit does not have to be repaid and will come directly off of homebuyers’ 2010 tax liability. For more information, contact Dale Lovelace at (209) 862-9462 or; visit www.federalhousingtaxcredit.com