On November 6, 2009 President Obama signed legislation to extend the First Time Homebuyer Tax Credit program to April 30, 2010. The program is also being expanded, effective December 1st , to provide credits up to $6,500 to existing home owners who are purchasing a new primary residence. Existing home owners are defined as those who have owned their existing residence for 5 out of the previous 8 years. First time home owners (those who haven’t owned a home for at least 3 years) will still be eligible for up to an $8,000 credit. To qualify, buyers have to sign purchase agreements before May 1, 2010 and close escrow by July 1, 2010. Home purchase prices are capped at $800,000 and income limits of $125,000 for individuals and $225,000 for couples.
The program is intended only for the purchase of a primary residence, not vacation or investment properties. If the home is sold again within three years, the tax credit must be returned.
A detailed explanation of the program can be found in Kathleen Pender’s column on SF Gate.
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