Illinois Home Buyers Take Note… Home buyer Tax Credit Extended and Enhanced!

On November 5, 2009, Congress gave final approval to legislation expanding an $8,000 tax credit for first-time home buyers, and President Obama signed the bill on November 6, 2009!

Highlights:

• The new bill extends, until April 30, the $8,000 tax credit for first-time homebuyers that would otherwise expire at the end of this month.
• The legislation will allow the credit for couples earning up to $225,000 a year and individuals earning up to $125,000. That’s up from the current $75,000 limit for individuals and $150,000 for couples.
• It also will allow home buyers who have owned their prior residence for at least five years to receive a $6,500 credit. Those who sell their new home, or no longer use it as their main residence within three years, would have to repay the credit. Homes worth more than $800,000 wouldn’t be eligible.

This is great news for both first time home buyers and existing home owners who have been thinking about buying rather than just a new mortgage!