Home Buyers’ Tax Credit Extended, Expanded
President Obama signed legislation extending the first time homebuyers’ credit. The legislation also added a new credit for existing homeowners who meet certain qualifications. People looking at homes for sale in Lubbock will be please to know that the former deadline of November 30, 2009 has been extended to April 10, 2010.
The legislation extends a tax credit of up to $8,000 for qualifying first-time homebuyers - defined as one who has had no ownership interest in a principal residence in the United States in the three years previous. If you’re a first-time homebuyer, you qualify for the credit if you purchase a home, or have one under contract, by April 30, 2010 (you have an additional 60 days to close after that date).
In addition, existing homeowners can now qualify for a new tax credit of up to $6,500. They qualify if they have lived in their current residence for five years or more (out of the previous eight years), and purchase a home or sign a sales contract for a new home from Nov. 7 to the end of April of next year.
Both credits are available for the purchase of “principal residences” with prices up to $800,000. The credits start to phase out for individuals with incomes above $125,000 and for joint filers who earn more than $225,000. Previously, the credit for first-time homebuyers phased out for individuals with income above $75,000 and for joint filers with incomes above $150,000.
Individuals or families who participate in the program will need to live in their home for three years after the purchase, or will have to pay the credit back. The credit can be claimed on 2009 taxes, even if the home is purchased next year.
Vintage Township presently has available homes for sale in Lubbock that are eligible for the extended credits to qualified homebuyers. If you are interested in this opportunity to become a resident in Lubbock’s greatest neighborhood, please contact us.
