REALTORS® all over America have been holding their breaths for the last few weeks, hoping Congress would extend the Home Buyer Tax Credit beyond the scheduled end date of November 30. Now we can start breathing again.

The new legislation, passed by both houses of Congress in the past few days and signed by President Obama this morning, not only continues the original program, it opens up the program to more affluent buyers.. And it sets up a similar tax credit program for people who already own a home.

Highlights:

1) The tax credit program covers qualified buyers who put a home under contract prior to April 30, 2010. (The purchase must close by June 30.)
2) A couple buying their first home qualify for up to $8,000 Tax Credit if their income is less than $225,000.
3) A couple who has owned a home for 5 consecutive years during the last 8 years qualifies for up to $6,500 Tax Credit if their income is less than $225,000.

Under the previous version of this program, the income limit was only $150,000 for couples and only first-time home buyers were qualified to receive a tax credit. It is hoped the new program will stimulate "move up" sales.

The new program does not provide any tax credit to investors. Homes bought for more than $800,000 do not qualify.

Both the National Association of Home Builders and the National Association of REALTORS® lobbied aggressively for the new program.

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Ken Lampton, RE/MAX About Dallas
CRS (Certified Residential Specialist)
CDPE (Certified Distressed Property Expert)
www.m-street-dallas.com