Good News!Late last week, I heard the news announcing that the Senate reached an agreement for the following items set forth on the home buyer tax credit bill:
To extend the $8000 First Time home Buyer Credit
To offer a tax credit to home buyers that are not first time buyers if they are buying a primary residence
To increase income limits - singles were increased from $75,000 to $125,000. Married couples filing jointly were increased from $150,000 to $250,000
One caveat - Home buyers must have executed contracts in hand by April 30th however you have until June 30th, 2010 to close.
Primary residence limit- Homebuyers who already own a home are only eligible if the home they are leaving has been used as a principal residence for 5 years or more
This is amazing news! Many Hoboken buyers did not qualify under current income limitations and also many home owners who want to sell and buy a home now have an incentive to do so in 2010 to receive the tax credit. While $6,500 is a lot less than the original $15,000 that was first proposed, this is still excellent news for everyone. While it's not set in stone yet, all signs point to a great likelihood that it will be passed soon. Keep in mind, there is always a chance that their will still be some changes to the above.
If only now Congress could pull their heads together to pass a bill making it mandatory that banks negotiate with homeowners that have an ALT A or ARM mortgage to a lower more affordable rate to keep them in their homes, then we could certainly avoid another major bump for home owners.
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