Housing Complex

Homebuyer Tax Credit Will Extend Through July

People are dying for more information on Congress's first-time homebuyer tax credit, which will likely be renewed soon.

The proof is in the page-views: This brief little item I recently posted on the credit is the most popular post in the last month. Google delivered thousands of readers to my little online doorstep. The second place winner–"Florida Avenue Grilling," an article I worked on for weeks—drew half the viewers. Sigh.  So it goes.

You people want first-time homebuyer tax credit news, here you go! On Tuesday, Connecticut Senator Chris Dodd announced that his renewal plan had enough backing in the Senate to pass. But he refused to disclose details about the new agreement, according to Reuters.

Cut to yesterday, and the Wall Street Journal fleshes out the story:

  • "The agreement would extend the existing credit for first-time home buyers, worth up to $8,000, while offering a new credit of up to $6,500 for some existing homeowners."
  • "The credit would be extended from its current expiration date of Dec. 1 to all contracts entered into by April 30, and closed before July 1."
  • "It is expected that income limits on people claiming the credit would be increased to $125,000 for singles and $250,000 for couples, from the current $75,000 and $150,000, aides said. The credit phases out for people making more than those amounts."

Also, Reuters reported that the extension will be "final"—no extensions on extensions.

  • Phani

    <<>>

    I signed the contract for a new home, in September 2009. But the home will be ready to close only in April 2010. Now, because I signed the contract before Dec 1, 2009, will I be ineligible for the tax credit?

  • Phani

    The credit would be extended from its current expiration date of Dec. 1 to all contracts entered into by April 30...

    I signed the contract for a new home, in September 2009. But the home will be ready to close only in April 2010. Now, because I signed the contract before Dec 1, 2009, will I be ineligible for the tax credit?

  • Alan

    Phani,

    I am in the same situation, a little diffrent I went into contract in late July. I am to close on Nov.13. I have been in contact with the builder, and finance copany, and have learned that everything is still speculative. From some of the old tax extension requiremnts the "date" so to speack that stamps your elgibility is the time in which the 'DEED' transafers which is closing. I am looking at a new build and they are ok if I pay a daily fee from closing to DEcember 1, since we will quilify for the $6500.00 Extension.

  • chuck

    I am going to build a house with the help of my Grandmother. She is gifting me the land and financing the building of the house. How could I become eligible for this credit? Is there a paperwork trick so I am not purchasing from a close relative?

  • Erica

    Let me see if I understand - you're about to receive a MASSIVE gift from your family, and you want to see if there's a way to scam the system to get a gift from the taxpayers as well? Classy.

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