First Time Home Buyer Tax Credit Extension – Income Levels Increased

Posted on | October 29, 2009 | 16 Comments

The first time home buyers tax credit extension is getting very close to being finished. The latest update is that the extension will offer tax credits to home purchases under contract by April 30th, 2010 while allowing another 60 days to close on the sale. The biggest change we see in the newest proposal is that the income levels for the tax credit have increased. The new proposal is individuals up to $125,000 and couples up to $250,000; this is an increase from $75,000 for individuals and $150,000 for couples.

For “move-up” buyers or individuals who have lived in their current home for five or more years the tax credit would have the maximum of $6500. Please remember that this just a proposal and nothing has been confirmed yet. Overall, it looks as if the tax credit extension is a reality and many first time home buyers are going to get their wishes of having the tax credit moved forward.

With the extension getting very close to being signed or denied it is important that Washington know how you feel. Please make sure to voice your opinion through comments or voting on our tax credit extension poll. From the feedback we have received most of you are strongly in favor of the extension so let your voice be heard at the following poll:

First Time Home Buyers Tax Credit Extension Poll.

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Author: Jesse Wojdylo

Category: Current News

Comments

16 Responses to “First Time Home Buyer Tax Credit Extension – Income Levels Increased”

Ryan Velting
October 29th, 2009 @ 6:01 am

I am really hoping that this extension passes and does so soon. I am in the process of purchasing a house that is in short sale and we have been waiting it out for 60+ days now but it is looking like we will not be able to close in time under the current bill. The tax credit is pretty much going to make or break the deal for us at this point.
quadre
October 29th, 2009 @ 6:01 am

I’m glad that they might extend the credit. Right now I’m in the process of buying my first home but I won’t be able to close till december. So I’m just hoping and praying that the president approves this credit
Jillian
October 29th, 2009 @ 6:15 am

I am relieved. I made an offer on a short sale and the bank is taking forever to get back, though the owner has accepted it the offer. I really need the tax credit as a first time buyer to afford my first home. After putting down 20 percent, I will be cleaned out and I will need the money to make repairs and simply get settled in. The tax credit is truly the incentive for buying, and if it is not extended, I will likel exercise “back out” clauses to get out of the deal if the bank does not approve and close before the Nov. 30 deadline.
Latisha P
October 29th, 2009 @ 7:14 am

I think this would be something great. Because I too would like to purchase a home for me and my family, and with the deadline being the Nov. 30th, I will lose out. But if it’s expended, I would have more time to get my thing in order to get a chance at a once in a lifetime opportunity.
Andrew
October 29th, 2009 @ 7:54 am

I want to buy a home in the most responsible manner possible and remove a failed mortgage from this crisis. I am waiting for a contract on a short-sell offer with a proposed Nov. 15 closing date. I thought that would be sufficient but, unfortunately, there are unforeseen delays.

I am also right on the cusp of the current income level so, even if we do close in time, may not be eligible for the full credit, depending on how my end of year taxes work out. The proposed extension and increase would easily justify me making this purchase whereas, if it does not pass, I will withdraw my bid should there inevitably be any further delays or counteroffers.

PASS THIS PROPOSAL AND I WILL BUY A HOUSE HELPING A PRODUCTIVE OWNER OUT OF A BAD SITUATION AND REMOVING TOXIC LOANS FROM TWO BANKS’ BOOKS!

DON’T PASS IT AND I WILL HOARD MY MONEY LONGER WAITING FOR ANOTHER OPPORTUNITY AS THE MARKET CONTINUES TO FLOUNDER.
Claud Brown
October 29th, 2009 @ 7:59 am

Babe, does this mean that they’ve extended the date????
ami
October 29th, 2009 @ 8:03 am

I really don’t understand why they would allow people who already have homes to get the tax credit. What would happen to their house? Wouldn’t be forclose on their homes and that would create more problems with the market.
Felecia Mitchell
October 29th, 2009 @ 8:43 am

I am a first-time home buyer and having gone through all of the criteria’s of having the down payment and taking the home buying classes and passing with flying colors, not to mention the good credit, I feel like the tax credit deadline is personally discouraging me from purchasing a home right now. In addition to the tax credit, I have other frustrating issues with the programs that require a first-time home owners to purchase a foreclosure within FHA guidelines. Now I am willing to help out the economy the best way I can but now that the tax credit is nearing a deadline, home owners are willing to pay more than a home is worth just to get the credit. That is a big mistake as rushing to purchase a home over the market value just to get the tax credit is a dangerous game for a 30 year commitment.

Just my two cents
ken ledford
October 29th, 2009 @ 9:25 am

Yes!!! Finally something for EVERYONE !!!!
Stacey Ward
October 29th, 2009 @ 9:37 am

If the first time home buyers credit is extended till April 2010 with a 60 day grace period for closing, that would definitely help me out tremendously. It would also help the housing market flourish. I am currently working with a mortgage specialist to get qualified for a Home Mortgage Home loan. With the homes being so affordable now, I would like to purchase one and stop renting, why rent when you can own for less? That doesn’t make sense. With the qualifications for a loan through traditional lenders and banks being more rigid, it will take some time for people like myself with less than perfect credit to reshape our credit and qualify for a Home Mortgage loan. The extension would definitely be a boost to the economy and first time home buyers. I hope the legislature approves it.
Lisa Ketz
October 29th, 2009 @ 9:47 am

I am very much in favor of the extension. I am a real estate paralegal handling real estate closing transactions and am concerned that a lot of pending contracts for first time homebuyers may not close by Nov. 30th due to the backlog with lenders, appraisal and inspection firms and legal offices. I am also in the market to purchase a home myself after owning my current home for 8 years. If I were to receive a tax credit it would end up helping the economy because it would be used to do improvements on the home I purchase.
Home Buyer Tax Credit to be Extended? « Arroyo Seco Real Estate
October 29th, 2009 @ 10:04 am

[...] yet, but I suspect it soon will be. Here are some of the details of what is being discussed from Subprime Blogger: The first time home buyers tax credit extension is getting very close to being finished. The [...]
Bryan
October 29th, 2009 @ 10:13 am

If an existing owner gets into contract today and the bill passes, is he or she eligible for the credit or do you have to wait to get into a new contract until the bill passes?
Ingrid
October 29th, 2009 @ 12:00 pm

Still waiting to hear from the seller’s bank on a short sale offer we made at the end of JULY!!! Could be any day now or a few more weeks and we’ll definitely miss the current deadline. We thought we’d make it having an offer in in July but November is now around the corner with no answer. FINGERS and TOES crossed the extension passes!!!!
SpookyMan
October 29th, 2009 @ 8:13 pm

Ingrid – I find it hard to take your two exclamation points and capital letters seriously – we have been waiting in the same situation since the beginning of February and our offer is not a low-ball offer at all. I hope you don’t have to wait as long as we have – so many times they told us it will be next week – it’s such a torture.
Cody
November 2nd, 2009 @ 11:42 am

Does anyone know if the income limit increase will be retroactive? I made a purchase in July but under the current law make too much money to qualify for the credit. I could really use the money for appliances, repairs etc.