Everything You Need to Know about the Tax Credit Extension

On November 6,  homebuyers and Realtors around the country were all smiles when President Obama signed the tax credit extension into law. In case you missed the news the first time, or are just now starting the hunt for your new home; we at Bowen Family Homes wanted to give you a brief overview and refresher course on what the new bill means for you as a potential homebuyer.

The new law will be extended through April. If you’re a first time homebuyer you are still eligible for the $8,000 credit, but your new home will need to be under contract by April , 2010 and your closing date needs to fall on or before June 30, 2010.

The best part of this bill applies to repeat homebuyers. If you’ve been living in your home for five of the past eight years, you can take advantage of a $6,500 credit. Keep in mind that the five years must be consecutive.

Income limits have also increased so you have a better chance of qualifying for the credit then ever before. Single taxpayers with incomes up to $125,000 and married couples with a joint income of $250,000 are now eligible. If your income exceeded either of these limits by $20,000 or less you might be able to qualify for a partial tax credit.

According to NAHB Chairman, Joe Robson, close to 70% of the potential homebuyers will qualify for a tax credit, making it the perfect time to invest in a new home and an even better time to tour one of the many Bowen Family Homes communities.

With a variety of floor plans, size options, and communities, Bowen Family Homes is the perfect stop for any house hunter. Don’t delay, call for an appointment to tour a Bowen Family Home near you. An if you are worried about mortgage protection, don’t worry, we have a plan for that too! Read our post on the Bowen Family Homes safety net program.