2010 Homebuyer Tax Credit Extension and Expansion, a Good Deal?

Posted on | January 21, 2010 |

If you are thinking of buying a home, there really haven’t been many opportunities as good as today’s buyer’s market.

According to The National Association of Realtors, affordability is the best it’s been since the 1970’s, and with the extension and expansion of the Home Buyer Tax Credit, it’s an even better deal.

Despite recent reports of IRS delays and the inability to e-file when applying for the first time home buyer credit, it’s still worth it – if you’re looking to buy a house for a home, and not for profit. The credit was expanded to non-first time home buyers as well. This was due to the fact that the tax credit had provided a big incentive to first time home buyers, but little else. So, it was expanded to help incentivise home purchases of “move-up” buyers.

Requirements To Qualify

For first-time home buyers.

• First-time home buyers are defined as those who have never owned a home, or who have not owned a home in the last three years.

• The maximum credit available for first-time buyers is $8,000.

• Income limit is $125,000 for singles, $225,000 for married couples.

• Buyers must have a written, binding contract by April 30, 2010 and close by June 30, 2010.

For move-up borrowers.

• Move-up borrowers are defined as those who have owned and lived in their current home consecutively for 5 of the past 8 years.

• The maximum credit available to move-up buyers is $6,500.

• Income limit is $125,000 for singles, $225,000 for married couples.

• Buyers must have a written, binding contract by April 30, 2010 and close by June 30, 2010.

Is It Worth It?

In my opinion, the 2010 Homebuyer Tax Credits are worth a good deal IF:

• You are looking to buy a house now (or the VERY near future).
• Are planning on staying in this house for 5 years or more.
• Can afford the house on your current income.

The credit may not be extended further, but if you can’t afford the home then it really isn’t helping you in the long run. And investing in real estate is a long-term proposition in today’s market, the go-go days of flipping your home is over. So, it makes sense for qualified buyers looking to buy a home and just an investment.

It also helps the economy. Every home sold creates one new job over the next 12-months, and injects approximately $60,000 into the local economy, according to The National Association of Realtors.

Here’s a video from Jim Gillespie, President and CEO of Coldwell Banker that explains the tax credit quite well:

This is a Sponsored Post written by me on behalf of Coldwell Banker. All opinions are 100% mine.

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