President Obama has signed legislation to extend the Homebuyer Tax Credit. Passage of the bill was widely anticipated to further spur economic recovery in the housing sector, as more buyers are now eligible for tax breaks under the new law.
In addition to offering the $8,000 first-time homebuyer tax credit, the new law also allows a $6,500 credit for repeat or move-up homebuyers who have lived in their primary residence for at least 5 years.
The tax credits are available to buyers who sign purchase agreements on a new or existing primary residence between December 1, 2009, and April 30, 2010. Buyers would have until June 30 to close on their new homes.
There is an $800,000 price limit on all homes eligible for the credit. The income limits for all buyers are now $125,000 per year for individuals and $225,000 for married couples. Under the old program, the limits were $75,000 and $150,000 respectively. The first-time homebuyer credit is also available to those who have not owned a home in the previous three years. The credit does not have to be repaid unless the home is sold or ceases to be the primary residence within three years.
I believe this will continue to benefit the bottoming process for the Orange County real estate market. The tax credit for move-up buyers will give motivation to the next “group” I anticipate coming into the market.
Please feel free to give us a call or email if you have any questions in regards to the homebuyer tax credit extension.
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The Aaronson Group is committed to offering the highest standards of professional service for all your Orange County Real Estate needs. We take pride in getting top dollar for our home sellers with the least amount of time. For our home buyers we employ our extensive knowledge and experience to find the perfect home. By specializing in short sales, bank foreclosures and reo properties we have had tremendous success in procuring bargains for our clients. If you would like more information in regards to buying or selling a home, please contact us