First-time home buyers and move up buyers have another great reason to get on the path to purchasing a new home! The benefit to First-time homebuyers is a tax credit up to $8,000 and for qualified Move-up buyers a tax credit up to $6,500. But this opportunity ends in April.
- Between November 7, 2009 and April 30, 2010, homebuyers that have a signed binding contract to purchase a home by April 30, 2010 may be eligible for the tax credit. The transaction must close by June 30, 2010.
- For First-Time Homebuyers, a tax credit up to $8,000 ($4000 for married filing separate), homebuyers may receive a credit of 10 percent of the purchase price up to the $8,000 tax credit amount. If you have never owned a home before or have not owned a principle residence in the last three years, you are considered a First-Time Homebuyer.
- For the “Move Up” consumer, a tax credit of up to $6,500 ($3250 married filing separate) is available for Homeowners who have lived in their current residence for at least five consecutive years out of the past eight years. The homebuyers can receive a credit up to $6,500 when they contract to purchase a home by April 30, 2010, and close by June 30, 2010
The tax credit does not have to be repaid provided you live in the new home for a minimum of three years. Military families who must move due to a call to active duty are exempt from this minimum.