A wonderful development occurred today for prospective home buyers in the form of legislation passed by both the House and the Senate.
Attached to a bill extending unemployment benefits, the measure is great news for both first-time and other home buyers. The White House says that President Obama will sign the legislation tomorrow.
The new law will extend the $8,000 credit for first-time home buyers for sales contracts entered into by April 30 and closed by June 30. Further, it has been expanded to include a new $6,500 credit for owners of existing homes who are purchasing a new principal residence.
Individuals who already own a home can claim the $6,500 tax credit if they have been living in their principal residence for five consecutive years out of the last eight.
Additionally, the income eligibility limits to claim the full credit amount for both groups of home buyers have been raised from $75,000 to $125,000 for individuals and by $75,000 to $225,000 for married couples.