Home Buyer Tax Credit Extended

President Obama signed the Extended Tax Credit into Law November 6, 2009 extending the program to April 30, 2010. The new legislation extends the $8,000 home buyer credit for first-time home buyers, but also includes a $6,500 tax credit for buyers who are current home owners and have lived in their home for five of the past eight years. Oklahoma Central has provided a brief overview of the two tax credits to help you determine if you are eligible:

$8,000 First-Time Home Buyer Tax Credit

• This tax credit is for first-time home buyers only. A “first-time home buyer” is someone who has not owned a principal residence for three years before applying for a loan.
• The tax credit is equal to 10% of the homes purchase price but shall not exceed $8000.
• The tax credit now applies to sales occurring on or after January 1, 2009 or before April 30, 2010. However, in cases where a binding sales contract is signed by April 30, 2010, a home purchase completed by June 30, 2010 will qualify.
• Single taxpayers with income up to $125,000 and married couples with incomes up to $225,000 (updated from $75,000 and $150,000) qualify for the full tax credit.
• The tax credit does not have to be repaid.

$6,500 Repeat Home Buyer Tax Credit

• This tax credit is for buyers who have owned and lived in their previous home for five consecutive years out of the last eight.
• The tax credit is equal to 10% of the home’s purchase price but shall not exceed $6,5000
• The tax credit is available for a primary residence purchase after November 6, 2009 and on or before April 30, 2010. However, in cases where a binding sales contract is signed by April 30, 2010, the home purchase qualifies provided it is completed by June 30, 2010.
• Single taxpayers with income up to $125,000 and married couples with incomes up to $225,000 qualify for the full tax credit.
• The tax credit does not have to be repaid.

For more information on the Home Buyer Tax Credit, please visit the following sites:

http://www.federalhousingtaxcredit.com

http://www.irs.gov/

Mortgage rates are still low and with the Home Buyer Tax Credit, now might be the perfect time to purchase your first home. Visit our Real Estate web page for more information http://www.oklahomacentral.org/asp/products/product_4.asp or call us at 918.664.6000.