IRS offers guidance on new $6,500 tax credit for repeat home buyers

Finally we have more specifics on the $6,500 tax break for repeat buyers. CLICK HERE TO READ IRS GUIDELINES.

The 1st time Homebuyer Tax Credit is Extended AND Expanded to Existing Owners

This is great news for Real Estate Buyers either buying their first home or if you have lived in your home 5 years.
Tax credit plan
The homebuyer tax credit expansion measure includes these provisions:

• Extends the $8,000 first time Homebuyers Tax Credit and creates a new $6,500 tax credit for homeowners buying a new home by July 1, 2010.
• Homebuyers with contracts as of April 30 qualify for the credit so long as they close the transaction within 60 days.
• The full credit is available to homebuyers with incomes of up to $125,000 for a single return or $225,000 for a joint return.
• Not available for homes costing over $800,000.
• Homebuyers who already own a home are only eligible if the home they are leaving has been used as a principal residence for five consecutive years in the last eight.
• Provides authority to the IRS to provide greater oversight while processing the return and requires that the taxpayer claiming the credit be 18 or older.
• Members of the military, military intelligence and foreign service who are on qualified extended official duty are not subject to the recapture fee and individuals who have been deployed overseas for 90 days or more in 2008 or 2009 can claim the credit through April 30, 2011.

“Realtors® appreciate the swift action by Congress to extend the homebuyer tax credit and expand it to some current homeowners,” NAR President Charles McMillan says.

“The substantial rise in home sales we’ve seen over the past few months proves that the tax credit is working and is being used by buyers who were waiting for the right opportunity to get into the market,” McMillan says. “This important incentive is helping to stabilize the housing market, stimulate the economy and create new jobs in communities all across our great nation. Extending and expanding the home buyer tax credit will enable even more families to take advantage of current low interest rates and affordable prices to invest in their future through homeownership.”

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Tax Credit May be Extended To Buyers who already own a home!

U.S. senators are nearing a deal on a measure to EXTEND the 1st-time home buyer TAX CREDIT through next April and EXPAND it to some buyers who ALREADY OWN A HOME!
Under the deal, certain "step up" buyers who have lived in their current home for at least five years would also qualify for the tax credit, according to lobbyists close to the negotiations.

Under the measure, the credit would run through April 30 of next year, though sales contracts in force by April 30th would be eligible as long as the deal closes within 60 days. The credit would amount to 10% of the sales price, with a maximum of $7,290. The current credit has a cap of $8,000
CLICK HERE TO READ NASDAQ'S FULL ARTICLE.

Estimate your credit score range

http://articles.moneycentral.msn.com/Banking/your-credit-score.aspx

1st time homebuyers $8K tax credit for down payment

Attention: 1st time home buyers in Ramona. USDA Rural Loan, low interest rates, $8K tax credit for down payment...Being a first time home buyer these days just gets better and better. The USDA Rural Loan, low interest rates and the $8K tax credit now looks like it may be used as as down payment

For those 50% of 1st time buyers that do not have the down payment, this Government perk could really help.