Home Buyer Tax Credit: Update

Good afternoon!  There is some solid evidence coming from the Senate this afternoon that a move to extend the tax credit is highly probable.  Updates to the extension/expansion/revision include:

• Increased income limits for eligible borrowers.
• $8,000 or 10% of the purchase price would remain the the credit for FTHB.
• $6,500 for home buyers who have lived in their home for 5 years and are selling to purchase again.
• Tax credit would expire April 30, 2010 with an additional 60 days to close (contract must be written prior to April 30th).

The proposal from the Senate will set the tone for discussion.  Please note, this does not mean it’s a done deal by any means.

Information courtesy of Bloomberg (click to see the entire article).