Great news homebuyer tax credit extended and improved

The news we all wanted and expected is finally here. CNBC just announced the President signed it a few minutes ago. The first time homebuyer tax credit has been extended until June 30th 2010 for closings and April 30th 2010 to have a ratified contract. Another part of the expansion is the income limits have been increased to $125,000 for individuals and $225,000 for couples. The older limits were $75,000 and and $150,000 respectively under the current law. The current program expires for closings at the end of November. This will be a huge boon for the DC metro area as many people were simply making too much money to take advantage of the current program. We have 8 months to take advantage, please do not think that this program will be extended again. As the economy improves Congress will let programs like this expire and you will lose a major advantage. This will continue to cause a spike in the local DC area, some counties and cities are showing impressive gains with multiple offers and drastically lowered inventory. Take the Wooton school district in MD. I have had several Realtors tell me that there is simply no inventory in that highly regarded school district and that homes are moving in a matter of days with several offers.

As good as this news is there is even more. If you have owned a home for at least 5 years you now qualify for a tax credit of up to $6,500 when you buy a new primary residence. That will REALLY get people moving as long as the qualify under the same rules as first time homebuyers. More details will be released soon but if it works the same way you will be able to amend your taxes and receive the money to be used as a partial downpayment also. Credit is owed to Senator Ben Cardin (D-MD) for introducing the legislation and seeing it thru all the way to the President's desk.
If you have any questions about your home purchase in DC, MD, VA, DE or FL please feel free to contact me and we can get right to work.

Thanks,
Brent Mendelson
Mortage Broker