On November 6, 2009, President Obama signed into law The Worker, Homeownership, and Business Assistance Act of 2009 (WHBAA).   Included in this bill is an extension of the first time home buyer’s tax credit of $8000.  The tax credit now applies to home sales from January 1, 2009 through April 30, 2010.   The last date to have the purchase contract signed is April 30, 2010 and it must close by June 30, 2010 to qualify.

Additionally, the WHBAA establishes a of up to $6500 for existing home owners buying a principle residence between November 6, 2009 and April 30, 2010.  Again, the last date to have the purchase contract signed is April 30, 2010 and it must close by June 30, 2010 to qualify. 

What is the definition of a move-up or repeat home buyer?
For existing home owners, the law defines a tax credit qualified move-up home buyer as a home owner who has owned and resided in a home for at least five consecutive years of the eight years prior to the purchase date.  Repeat home buyers do not have to purchase a home that is more expensive than their previous home to qualify for the tax credit.

For more information on this new law and tax credit extension, you can see the White House Press Release here.  You can also get more information on the National Association of Home Builders’ website by clicking here.  Check with your accountant or financial advisor to determine your eligibility.

If you are thinking about considering a home purchase in the next six months, the time to check your credit is NOW.   You will want to be sure that all errors are corrected before visiting your lender and that you have done everything you can to optimize your credit rating and qualify for the best interest rates.  Contact us now for your Credit Check-up for only $100 with a complete credit analysis.

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