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Home Buyer Tax Credit to be Extended and Eligibility Expanded – Great News For FHA Loan Home Buyers

by Rob on October 28, 2009

The official announcement has not come, but word is that that home buyer tax credit will be extended to April 10th 2010 and expanded to include some move-up home buyers.  The tax credit is one of those “once in a life time” type of windfalls that is an unparalelled benefit for those buying a house.   In short, once you close on a house and you qualify, in weeks you will get a check for up to $7,290 in a refund for federal taxes that you paid.  That is an absolutely insane gift, has never been seen before and may never again.  So it is worth it to try and tax advantage of this tax credit and buy a home by April 10th 2010.  And using a 3.5% down FHA loan to purchase the house is a great way to do this. 

Some highlights of the tax credit below:

  • Income eligibility for first-time home buyers is still $75,000 for individuals and $150,000 for couples.
  • For move-up buyers, income eligibility is $125,000 for individuals and $250,000 for couples.
  • There is a minimum 5 year residency requirement in their current home for move-up home buyers.
  • The tax credit is the lesser of $7,290 or 10% of the purchase price.
  • The credit runs from Dec. 1, 2009 to April 30, 2010, with an additional 60 day period to close escrow. You just have to get your purchase contract accepted by April 1oth and then you have until the end of June to close.
  • The bill has not been signed yet, I have heard it will be by Friday

    • And remember, FHA loans are not just for first time homebuyers.  They are available to ANYONE who buys  a primary residence.  So “move-up” buyers who want to take advantage of the tax credit can also use a FHA loan to finance their new home.

    Please give me a call at 858-922-7899 if you have any questions about applying for a FHA loan or don’t hesitate to email me at homeloan8@gmail.com.

    Warm Regards,

    Rob Chomentowski

    Sr. Loan Officer (and FHA loan specialist)

    858-922-7899

    homeloan8@gmail.com

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