Chase Away the Winter Blues! Home buyers have much to look forward to in 2010. Low interest rates, low home prices, and more importantly, the extended and expanded home buyer tax credit. Now, for a limited time in 2010, the $8,000 home buyer tax credit will be available to first-time home buyers and certain current homeowners will also be eligible for a $6,500 credit.
Who can claim the credit? "First-time home buyers" who purchase homes between November 7, 2009 and April 30, 2010 are eligible for the credit. To qualify as a "first-time home buyer" the purchaser or his/her spouse may not have owned a residence during the three years prior to the purchase.
For current homeowners purchasing a home during the same time frame, they are also eligible for a tax credit, so long as the home being sold or vacated was their principal residence for five consecutive years within the last eight. To elaborate, it must be the same home; it is not enough that they have been homeowners for five consecutive years, they must have been in the same home for five consecutive years. Another key point is that the existing home does not need to be sold. One must, however, occupy the new home as a principal residence and do so for three years or risk recapture of the credit. Also, the new home does not need to cost more than the old home despite the concept that it is directed at "move up" buyers.
What are you waiting for, let's Chase Away the Winter Blues! Buy a home now and SAVE!
