Tax Credit Extension Confirmed

As expected, President Obama signed H.R. 3548 this morning which, among other things, extended the $8,000 tax credit for first-time buyers into 2010.

“Florida residents enjoy two additional advantages,” says Florida Realtors Vice President of Public Affairs John Sebree. “The Florida Homebuyer Opportunity Program (FHOP), created by the Florida Legislature earlier this year, still has approximately $28 million that first-time homebuyers can access and use toward their downpayment. And move-up buyers now have the ability to ‘port’ their current property tax savings to a new home.”

Under the new law:

• A purchase must be under contract by April 30, 2010
• A purchase under contract by April 30 must close no later than June 30, 2010
• After Dec. 1, 2009, income limits rise to $125,000 for singles and $225,000 for married couples; up from limits effective through Nov. 30 of $75,000 for singles and $150,000 for married couples. The tax credit phases out incrementally at each $20,000 increase in income.
• Effective immediately: The maximum home value purchased cannot exceed $800,000. Prior to the law being signed, first-time homebuyers had no limitation on a home’s cost.