What is Happening with the First Time Homebuyer’s Credit?

As of November 4, 2009, the Senate and House are working on a compromise measure to extend and expand the $8,000 tax credit for homebuyers.

The homebuyers’ credit — scheduled to expire November 30 — is proposed to be extended to cover homes under contract by April 30 that close by June 30, 2010. Additionally, homebuyers who have lived in their prior residence for at least five years could receive a credit of $6,500.

Income limits for eligibility would be raised, allowing many more people qualify for the program. Under the new legislation, individuals with income up to $125,000 a year and couples earning up to $225,000 would be eligible. The current income limits are $75,000 for individuals and $150,000 for couples. Under both the House and Senate versions, smaller amounts are available to people of slightly higher incomes until the credit phases out.

This is in no way a “done deal,” but at least it looks encouraging. I will update as further details are made available. As always, details of the current plan are available on my website at www.AnyHomes.com.