New Tax Credit Rules

Feature

Original Program

Extension

Deadline

Must fund by Nov. 30, 2009 (WFHM deadline was Oct. 30)

The measure is written differently so that a sales contract must be in place by April 30, 2010 – but homeowners have an additional 60 days to close.

Dollar Amount and Eligibility

Up to $8,000 for first-time home buyers (or 10 percent of the purchase price of the residence) if purchased Jan. 1 – Dec. 1, 2009

A FTHB was defined as someone who had not owned a home during the previous three years

Up to $8,000 for first-time home buyers

– OR –

$6,500 for current homeowners who have lived in their current residence for 5 consecutive years and are purchasing their next property

Income Cap

$75,000 (individual)

$150,000 (married couples)

$125,000 (individual)

$225,000 (married couples)

Increases in the cap make the measure available to a broader group of customers.

Purchase Price

N/A

$800,000 or less

Repayment requirement

Must live in home for 3 years or be required to repay the credit

Same

Documentation to be used

Documentation requirements and WFHM process still TBD. Watch My News for more details.