First Time Home Buyer Tax Credit Extended - April 2010

On November 6th, President Obama signed legislation which extends the first time home buyer tax credit of $8,000 until April 30th of 2010. Many experts to date feel that the original $8,000 tax credit has had a contributory effect to the stabilization of residential real estate values, especially for property valued under $200,000. In fact, the Case-Schiller Index - one of the most respected real estate indexes has shown four consecutive months of real estate growth.

I believe that this tax credit will help further stabilize the housing market through at least the first half of 2010, especially because of the addition of an existing home owner tax credit. That's right, there is now a tax credit of up to $6,500 for anyone who has lived in their property for 5 consecutive years, out of the last 8 years and makes less than $125,000 (single filers) or $225,000 (joint filers).

Regardless of whether you are applying for the first time home buyer credit or the existing home owner tax credit, binding contracts must be signed by April 30th, 2010 and closed by June 30th, 2010. Also, the law allows you to take the tax credit for either 2009 or 2010.