$8000 Homebuyer Tax Credit Extension Likely

This afternoon, the extended life of the $8000 first time home buyer credit looks like a "go" to extend it beyond its scheduled November 30th deadline! The extension was added as an amendment to an existing bill, HR 3548, that extends unemployment benefits. The U.S. Senate passed that bill on Wednesday and, after debate, the U.S. House passed HR 3548 this afternoon. It now needs only President Obama’s signature to become law, and the White House has indicated it will sign it, perhaps as early as tomorrow.

In addition to extending the tax credit for first-time homebuyers, the bill adds a smaller tax credit for homesteaded homebuyers who have lived in the house for five of the past seven years that are looking to make a move to a new home. This could bode well for those looking to relocate here to the Tampa Bay area and planning to sell their home up north. More about the $8000 First Time Home Buyer Credit.

The bill also increases the income limits of homebuyers from $75,000 (single) to $125,000; and from $150,000 (married) to $225,000. After the president signs the bill and extends the tax credit, the Florida Homebuyer Opportunity Program – a down payment and closing costs assistance program relating to the federal tax credit –automatically gets extended too. The state still has about $28 million available for homebuyers.*

The money is essentially a loan to first-time buyers; they receive it upfront, use it for a down payment or other costs, and pay it back once they get their federal refund.