Tax credit extension and expansion - this is Stimulus you can put in your pocket!
Posted by Rob Spring (Loan Officer) on Friday, November 6th, 2009 at 5:57pm.FAQ's: For the existing homeowner credit, does the new house need to cost more than the old house? No. Individuals who move from a high cost area to a lower cost area and who eet all eligibility requirements will qualify for the $6,500 credit. I am an existing homeowner who has lived in my current home for more than five years and are within the specifed income limits. On October 21, 2009, I signed a contract to purchase a new home and will close my loan on November 24th. If President Obama has signed the bill by the time I go to settlement, will I qualify for the new $6,500 tax credit? Yes. The existing homeowner credit goes into efect for purchases after the date of enactment (when the bill is signed). TODAY!!!! There is no reference to the date of contract for the new tax credit. The provision looks solely to the date of purchase, which is generally the date of settlement. I am a first-time homebuyer, but was not within the prior income limits at the time I entered into my contract to purchase a home on October 30, 2009. I will be covered, however, by the new income limits. If the new rules have been signed into law by the time I go to settlement, will I be eligible for a credit? Yes. The new income limitations go into effect as soon as the President has signed the bill. The income limit and other eligibility rules will look to your status as of the date of purchase, which is the settlement date. No. The cap on the cost of the purchased home is firm at $800,000. Any amount above $800,000 makes the home ineligible for any portion of the credit. Yes. Because you lived in the home for more than five consecutive years of the previous eight, you will qualify for the $6,500 credit. You do not have to close before December 1. Once the legislation has been signed, it will be as if the previous November 30 deadline had never existed. Yerefore, so long as the contract settles before June 30, 2010, you will be eligible for the credit. *Contact a tax advisor for full details
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I just wanted to thank you for publicizing the fact that there is now a credit for existing home owners! It seems that most people are aware of the first time home owners credit, but many fewer are aware of the existing home owners credit. I don't know if this is because of a lack of coverage by the press or what. Many potential home buyers already own homes, so getting this information out there might encourage people to buy!
Posted on Friday, December 18th, 2009 at 9:20 PM.