Information page about Housing Tax Credit:

Here is a list of some important items that have been added - Information Page

$6,500 Tax credit has been vote on:

The Senate and the House of Representatives have both passed the extension of the first time home buyer $8,000 tax credit and expansion of the home buyer $6,500 tax credit. President Obama should sign the legislation either today or by the first of the week..

Posted - October 31, 2009

Tax credit to repeat buyers:

One of the requirements for the $6,500 Housing Tax Credit might encourage people to increase their debt load.

• Must trade up to a larger principal residence.

How this might work if you are moving from a higher price area, we do not have the answers to right now.

Giving Some Support:

In case you have not heard, the U.S. Senate's top leaders are giving some support to extending and expanding the first time homebuyer tax credit of $8,000 to April of 2010. The $8,000 first time homebuyer tax credit will expire at the end of November 2009 unless it is extended.

Now is the time to contact your Senator and Congressman and let them know that this is a good idea. The economy could still use a boost to the housing market. We have seen some recovery, but we have a long way to go.  Housing has been the leading indicator for any recovery in the past and always brings us out of a recession.

There is support from both Democrats and Republicans to make changes to the current $8,000 tax credit and to add provisions to allow for the $6,500 Housing Tax Credit for those who have lived in their current home as a primary resident for 5 years or more. This tax credit could have some restrictions and would be available for people making up to $125,000 or couples earning up to $250,000 per year. This is more than the current $75,000 or couples earning up to $150,000 in the tax code. 

From Harry Reid, Democrat, and Mitch McConnell, Republican, there should be some general agreement to give housing some additional help before the current tax credit for first time homebuyers runs out in late November.  However, Senator Reid wants to attach an amendment to lengthen insurance for unemployed workers. This vote and the timing is uncertain, but housing is caught between unrelated issues that are important to Senator Reid.

This whole discussion in the Senate could be delayed until next week because of other items that are before the Senate. Now would be a good time to contact your Senator and Congressman to let them know how this might help your family in purchasing a new home.

Posted - October 29, 2009

• First-time buyers could continue to claim up to $8,000.
• Existing homeowners who have lived in their home for 5 years or more could receive up to $6,500
• Must trade up to a larger principal residence.
• The full credit would be limited to buyers who earn less than $125,000 a year and for married couples with annual incomes up to $225,000.
• The credit could only be used for homes selling for $800,000 or less.
• Contracts must be signed by April 30, 2010 and sales must close by June 30, 2010.