First Time Home Buyers Tax Credit Extension – $8000 through April 2010
Posted on | November 23, 2009 | No Comments
For quite some time the talk of the real estate market was the first time home buyers tax credit extension. The first time home buyers tax credit of $8000 was set to expire on November 30th, 2009. This expiration was for closing on a home which meant that it was likely the case that future home owners had to have started the paperwork before mid-October to benefit from this tax credit.
Many government officials saw the increase in homes sales due to the first time home buyers tax credit so they created a bill to extend the credit through April 30th, 2010. Many people thought it was a guarantee that this bill was going to pass but it did take a few extra weeks because it was part of the unemployment benefits extension as well. The bill was passed and it should greatly benefit the overall housing market.
Not only do first time home buyers receive a tax credit of $8000 but “move-up” buyers also receive a tax credit of $6500 if they have lived in their residence for five years and plan to move up. The data has not shown us an increase in mortgage applications yet but this is because the data we have received was for the period in which home buyers did not know if the tax credit was going to be extended. Now that the extension and expansion is in place we are likely to see an increase in mortgage applications through April 2010.
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Author: Alan Lake
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