First-Time Home Buyer Credit May Receive Much-Anticipated Extension

Those who have yet to take advantage of the hefty $8,000 First-Time Home Buyer Credit may have more time than they think to get in on the action. It seems that Congress is hard at work trying to extend the credit past its current deadline of Nov. 30, 2009. If the extension is passed, the credit will be available for a “limited” period of time, according to Treasury Secretary Tim Geithner and Housing Secretary Shaun Donovan.

Specifics of the Extension

Right now, the details are still sketchy, but what has been released to the public about the extension is the following:

  • Possible Spring deadline: The credit extension, if passed, will likely stretch out to Spring. With the new proposal, contracts to buy a home would have to be signed by April 30, 2010 and deals would have to be closed by June 30 to qualify.
  • Current homeowners included: The credit may extend to existing homeowners who are stepping up to a different home (must have lived in current home for five years).
  • New dollar amounts proposed: In addition to the current $8,000 credit for first-time home buyers, $6,500 may be available for homeowners looking to trade up to a bigger residence (home buyers must have AGI of less than $125,000 ($225,000 for married couples filing jointly).

While the credit has yet to be approved, it’s passage looks promising. If you’re thinking of taking advantage of the credit this time around, it’s doesn’t hurt to start your search for affordable mortgage rates now.

Will you take advantage of the home buyer tax credit if the extension passes?