Details on the Federal Home Buyer Tax Credits

$8,000 for First Time Home Buyers

• This is for those who haven't owned a home in the last 3 years.

• If the home is under $80,000, the tax credit will be 10% of the home's value.

• Buyer has to have a binding contract before April 30, 2010 and the home has to close by June 30, 2010.

$6,500 for Repeat Buyers

• This is for those who have lived in the current home they own for at least 5 years.

• Buyer has to have a binding contract before April 30, 2010 and the sale has to close by June 30, 2010, but they cannot close on the home before the date of the enactment of the new law.

• The home you are selling (or have already sold) must have been your principle residence for 5 of the past 8 years.

NOTE:  The home purchased must be your primary residence and there are income restrictions.

New Provisions of this new law:

• The Income Limits have been increased to $125,000 for single purchasers and $225,000 for married purchasers.

• The home purchased cannot cost more than $800,000.

Don't Wait Until the Last Minute

If you wait, you could end up not getting the tax credit...and here's why:

1.  It can take weeks to find the perfect home.

2.  If the home is perfect, other buyers my think it is, too.  That means that there will probably be multiple offers.  If you don't make the best (usually highest), you have to start all over....and take weeks to find the perfect home.

3.  If can take some time to negotiate a contract on the home.

4.  It can take a few weeks to make sure the home doesn't have any problems that will keep you from buying the home.  If it has problems, then you have to start the process of finding the perfect home all over again.

5.  The closer we get to April 30, the more buyers there will be out looking....and trying to keep you from finding your perfect home.

Plus, if you own an home, you may need to get it sold before you buy another one.