Wednesday, October 28, 2009

Home Buyer Tax Credit Revision

by Bill McBride on 10/28/2009 05:54:00 PM

From Bloomberg: Senate Said to Revise Plan to Extend, Expand Homebuyer Credit (ht Anthony)

The article states the plan might still change .

The details:

  • Income eligibility for home buyers increases to $125,000 for individuals and $225,000 for couples.
  • The tax credit for first-time home buyers (anyone who has not owned in the last 3 years) will be the lesser of $8,000 or 10% of the purchase price.
  • For move-up buyers - "who have lived in their current home for at least five years" - the credit would be limited to $6,500.
  • The credit runs from Dec. 1, 2009 to April 30, 2010, with an additional 60 day period to close escrow. (So end of April to sign contract, end of June to close escrow)

    The key change from yesterday is the increase in income limits for first-time home buyers (and somewhat minor changes to the size of the tax credit).