Homebuyer Tax Credits Extended

There’s good news for folks who would like to take advantage of the federal homebuyer tax credits that were passed in 2009. The government has extended the tax credit of up to $8,000 for qualified first-time homebuyers purchasing a principal residence and expanded the program to include a tax credit of up to $6,500 for qualified repeat homebuyers through April 30, 2010.

The tax credit for both first-time and repeat homebuyers now applies to sales occurring on or after January 1, 2009 and on or before April 30, 2010. Keep in mind there are income limitations. In both cases, the buyer’s income must be below $125,000 for single taxpayers and $225,000 for married couples filing joint returns.

If you make more than that, the tax credit amount is reduced for buyers with a modified adjusted gross income (MAGI) above the limits. The phase-out range for the tax credit program is equal to $20,000. That means a buyer’s tax credit amount is reduced to zero for taxpayers with MAGI of more than $145,000 (single) or $245,000 (married) and is reduced proportionally for taxpayers with MAGIs between these amounts.

For a comparison on the original program and the expanded version that was just extended, click here .

For more information on the federal homebuyer tax credits, go to the Federal Housing Tax Credit web site by clicking here.

Note: With home prices in the Bay Area higher than most other areas in the country, Tech CU can help prospective homebuyers get the loan amount they need with affordable jumbo loans up to $1 million with a 3/1 and now a 5/1 ARM. For more information on these programs, click here or call us at (800) 553-0880 and ask to speak to a Mortgage Consultant.