Listen Up! Now That The Ink Is Dry on the New and Expanded Tax Credit - Home Sellers and Buyers Prepare Yourselves For A New Wave of Action . . . .
Are you still in the fence about buying a new home, or selling your current home to move into that dream? Well, as can see by the passage of the new and improved home-buying bill; Congress wants to push you into the market with an expanded home buyer tax credit.
They sweetened the pie by expanding the program as follows; under the expanded program, homeowners no longer have to be first-time buyers and are now eligible for a tax credit of up to $6,500 if they purchase a new home. To qualify, current owners will need to have lived in their prior residence for five consecutive years out of the past eight years. Here is the all important detail . . . The credit would apply to home purchases under contract by April 30, 2010, as long as they close by June 30, 2010.
First-time buyers (and those who haven't owned a home in the last three years) will continue to be eligible for up to $8,000, with the same deadlines mentioned above.
As for income limits, the new credit would be available to individuals earning up to $125,000 or couples earning $250,000. That's up from $75,000 and $150,000, respectively, for the current tax credit. The credit can only be used on homes that cost $800,000 or less, and cannot be applied to vacation or second homes.
Here's what you need to know about the Extended and Expanded Home Buying Tax Credit:
Attention Sellers: More Buyers Expected -The new tax credit - coupled with low mortgage rates and the supply of affordability priced homes on the market - may give many people who had been a bit reluctant of buying that extra nudge to step into the market. And in contrast to the first-time home buyer credit, the new $6,500 credit is available to a larger part of the population, with higher incomes. Now that is great news for many.
Plan Out Your Timing Now - The legislation allows buyers to claim the credit if the home purchase is under contract by the end of April 2010, and closes by the end of June 2010. This may seem like a long time, but not in the world of home buying - New regulations and tougher qualifying criteria is causing delays not experienced in months and years past. In order to meet this deadline, consider from now until March your window to buy a house. Keep in mind that once you have an accepted offer, the closing process can take a while and can also be delayed for any number of reasons.
The Slow Months Won't Be As Slow -The renewed tax credit is obviously good news for buyers, and it is even better for sellers, especially Wisconsin sellers. As we all know, the real estate market is headed into what is traditionally the slowest months for real estate sales; Specifically here in Wisconsin, where the only thing that seems to move with urgency when the snow fly's, are the snow plows! It is often the case that sellers are advised that a home on the market between the months of October and April will probably get the least attention from buyers and attract lower offers than in busier periods. The credit is sure to renew interest in the market during the next 6 months -- and compel sellers to take advantage of an influx of buyers.
Already in a Deal? Check Your Status - Buyers who are smack in the middle of a transaction now or have already accepted a contract should pause and figure out if they can take advantage of the credit. The first thing they should do is call their real estate agent or mortgage broker to find out if this money would be available to them and how they can apply.
Happy buying and Selling - If you need any assistance, or have any questions, we are here to help in any way we can.
The NAHB, National Association of Home Builders has put together the most comprehensive site and is sure to provide answers to may questions you may have. Please visit the links below -
FAQ - First Time Home Buyers -
Gwenn Tanvas is a Certified Mortgage Planning Specialists who specializes in working with First-Time Home Buyers and Government Programs such as FHA, State and Federal VA and USDA Rural Housing Loans. Visit her website for more information, on-line calculators and a secure on-line application. She is able to assist with transaction throughout the state of Wisconsin. Her offices are located in Appleton, Oshkosh and Green Bay and offers the convenience of one-stop shopping. http://www.WisconsinLoanTips.com or http://www.MortgageProsOfWisconsin.com she can also be reached for comment or to answer questions via email at gwennt@centurytel.net
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New Employee Benefit plan launches in the Fox Valley - Buyers - Sellers receive generous cash back when buying or selling a home through a participating employer - Plus many. many more discounts from participating value partners.... http://www.WisconsinHomeBenefits.com
Gwenn, this is a great post and easy to understand for buyers and seller.