By now, word has traveled throughout the housing industry about the extension of the 2009 First Time Home Buyer Tax Credit. An added feature to the act is the inclusion of move-up buyers, those who have lived in their existing homes for a minimum of five years. These buyers, most of them anyway, will be eligible to receive a maximum of $6,500 tax credit.
There are income limits for both categories of buyers - $125,000 for singles and $225,000 for married couples. And there is a cap on the price of the home of $800,000.
Homes should be "under contract" by April 30, 2010 and must close by June 30, 2010 to be eligible for the credit.
Visit the website for the Federal Housing Tax Credit.
As a Realtor and someone concerned about our economy, I am happy to see the government extend and modify the existing tax credit. However, my personal opinion is that it is unfortunate so many potential buyers will be left out.
Don't most homeowners trade up every three to five years? Those who tend to move more frequently will not be allowed to participate in the tax credit. On the other hand, will $6,500 induce a family to trade up if they normally live in their home for historically longer periods?
I would have preferred to see the tax credit awarded to any move-up buyer. Or at least those who had lived in their homes for a shorter timeframe. Three years might have been more equitable.
At any rate, this is important, welcome news for the real estate industry and many homebuyers throughout the country.
Written and Published by Pat Starnes REALTOR
Pat Starnes, a Realtor since 1988, specializes in Mississippi Residential Real Estate and can assist you with buying or selling in the Jackson MS Metro area.
Areas of service: Brandon, Pearl, Ridgeland, and the Ross Barnett Reservoir area
Search all available homes in the Jackson MS MLS
Pat Starnes, Broker; Pat Starnes Real Estate, 300 Castlewoods Blvd., Brandon, MS 39047; 601-278-4513 - Cell
Great post! Thanks for the info. and link.
Hi Pat, I totally agree with your point here! As a mortgage lender it is frustrating to see the government put the 5-year ownership stipulation on the move-up buyer credit because this does exclude so many people. I am a perfect example myself since I've owned my home just over 4 years and will not qualify for the credit, which I would probably take advantage of if I was eligible!
Tim, it's just wrong that you will miss out! It's people like you who are being "penalized". Hey, maybe they will revise? There were changes in the 2009 bill...
Pat, I don't like the 5-year ownership requirement either. I do think it should be broader too. We'll have to wait and see...
The 2009 law was modified to exclude mobile homes, or perhaps it was a clarification. At any rate, there was a change. Perhaps the powers that be will modify the eligibility requirement. Would be great!