My Mortgage Blog

House Passes Bill...On to President for approval

As part of its plan to stimulate the U.S. housing market and address the economic challenges facing our nation, Congress has passed new legislation that:

· Extends the First-Time Home Buyer Tax Credit of up to $8,000 to first-time home buyers until April 30, 2010.

· Expands the credit to grant a $6,500 credit to current home owners purchasing a new or existing home between the date the bill is signed by President Obama and April 30, 2010.

Under the Extended Home Buyer Tax Credit which is effective on the date the bill is signed by President Obama single buyers with incomes up to $125,000 and married couples with incomes up to $225,000—may receive the maximum tax credit. These numbers are up from the current plan which states: single buyers with incomes up to $75,000 and married couples with incomes up to $150,000—may receive the maximum tax credit.

So clients that close before the president signs the new bill will be tied to the current guidelines.