| Many prospective homeowners believe that the | | | | give back the money. On the other hand, exemptions |
| first-time home buyer stimulus expired on November | | | | have been written into the law in case there is a death |
| 30 of last year. However, Congress extended the tax | | | | or a divorce. |
| credit on November 9, and first timers can still take | | | | Under the current stimulus, it is a refundable tax credit, |
| advantage of the up to $8,000 tax allowance. | | | | and that means that you can take advantage of it |
| In addition, longtime homeowners were included when | | | | even if you have very little tax liability. The time when |
| the package was extended, and they can claim up to | | | | you can take advantage of the tax break depends on |
| $6,500, as long as they meet the requirements. The | | | | when you purchased and closed on the home, or |
| new deadline for first time homebuyers and longtime | | | | when you are going to purchase and close on the |
| homeowners is now April 30, 2010. | | | | home, so check with your tax specialist to see when |
| The requirements say that first time homebuyers must | | | | you would be able to use the tax allowance. |
| enter into a legally binding agreement to buy a home | | | | If you have lived in your principal residence for five |
| by that date, and that they must have closed on the | | | | straight years during the eight years previous to the |
| deal by June 30. The same thing goes for longtime | | | | new home purchase, you are eligible for the stimulus |
| homebuyers, but there is a one year extension for | | | | as a long-time homeowner. You must be mindful of |
| federal employees and people in the military who are | | | | the time limits for purchasing a home because the |
| overseas. | | | | deadline is just about a month away. |
| In order to qualify as a first timer, you cannot have | | | | With home prices remaining low and the real estate |
| owned a principal residence for three years prior to | | | | market still glutted with unsold and foreclosed homes, |
| buying your new home, and the three years begin to | | | | and with more homes coming into the market each |
| run when the title is actually exchanged. | | | | day, this may be a good time to look into buying a |
| Gross incomes for single filers were adjusted from | | | | home. However, you should always keep in mind that |
| $75,000 to $125,000 to qualify for the stimulus. Joint | | | | a good loan, according to home mortgage lenders, is |
| filers had their gross income adjusted from $150,000 to | | | | three times your gross annual income, along with a |
| $225,000. | | | | 20% down payment. |
| An earlier version of the tax break gave homebuyers | | | | Do not make the mistake of over-extending yourself |
| $7,500 toward the purchase of the home, but the | | | | to five or six times your gross annual income and get |
| money had to be paid back. The current allowance | | | | into more house than you can actually afford, even if |
| does not have to be paid back as long as you keep | | | | you do get a tax credit. The idea is to be able to buy |
| your home for at least three years. | | | | an affordable home, get some help in doing, and then |
| If you sell your home before that time, you will have to | | | | to be able to keep and enjoy the home. |