Extension of $8,000 Tax Credit

Washington is hoping to keep our real estsate moving by extending the tax credit and we all hope it works.

The bill was signed into law today. It continues the $8,000 tax credit for "first time" buyers who haven't owned a residence in the past three years. The government even added a new credit of $6,500 to current home owners who have lived i their residence 5 of the last 8 years. This is available to buyers with an adjusted gross income of $125,000 for single purchasers or $225,000 for those filing jointly. The credit is phased out for incomes over those amounts.

The deadline is now April 30, 2010 but if you are in a contract by April 30 you have until July 1, 2010 to close escrow. They are hoping this helps short sales which always takes longer to close, if they do.

We have had so many investors in the market that perhaps this extension will continue to try and help first time buyers have an opportuhnity to purchase.