The First Time Buyer Tax Credit Has Been Extended

Posted by Judy Orr on Tuesday, November 10th, 2009 at 5:44am.

home buyers credit for orland park real estateThis isn't really news by the time I'm posting this and most of you probably know it has been extended.

Well, everyone figured it would get extended - right?

There was word that it would get extended but until it was signed, sealed and delivered, it was just "talk."  I had no idea if it would be extended or not.  And I certainly had no idea what the rules would be.

Details of the "Home Buyer" Credit

Notice I did not put "First Time" Buyer Credit, because now it isn't just for first-timers!  The credit is the same for first-time buyers as before but with a maximum earnings increase (up to $125,000 for an individual, $250,000 for a couple), allowing even more to qualify for the credit.  It is still 10% of the purchase price up to $8,000.

And for anyone that has owned their home for at least the past 5 years that also falls within those earning maximums, a $6,500 credit is available!  This tax credit keeps offering more every time it is renewed.  Remember, the prior credit had to be paid back and those buyers are expected to do so.

Some are saying it is still leaving out a big section of would-be buyers

Anyone that bought a property less than 5 years ago and want to sell will not be eligible for the credit.  And those same people might be the one's that are trying to get out to try to save their credit and possibly get another home at a better price.  Of course, if they paid top dollar during the seller's market they might have a difficult time trying to get what they owe on it (depending on what they put down).

What is the time frame?

You must have a signed contract in place by April 30, 2010.  However, you don't have to close until June 30, 2010 to be eligible for the credit.  This extension isn't very long in my opinion, especially since the winter months are historically slower sales months, especially in the Chicago suburbs real estate market with our cold weather.

Will this cause a busier Fall and Winter season?

Only time will tell.  There were already buyers sitting on the fence waiting to see if this next extension would offer them more.  They might expect another extension next April if the market hasn't picked up much.  And if it does get extended again, buyers will start expecting this and won't feel the need to buy something by the end date because they'll expect another extension.

This is actually giving me a push to get my house on the market so I can take advantage of the credit.  I won't gamble that it will get extended again.  If I didn't have this "push" I'd just take my time and probably wouldn't even get my home on the market until March.  Now I'm hoping to get it up asap so I can get it sold and start my search.

If this extension has given you new hope to purchase a new home feel free to search the Chicago area and suburbs MLS or even better, fill out the Automated Home Finder Form to receive new listings daily via e-mail.

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