First Time Home Buyer Extension Plus a Tax Credit for Everyone Who Has Owned Their Home For 5 Years

The new proposal extending the first time home buyer tax credit that is due to expire on November 30th  is still working it’s way through Washington, Senate leaders have agreed  to support extending the $8,000 first time homebuyer tax credit which will also offer a tax credit of up to $6500 to buyers who already own a home.  In order to qualify for the $6500 credit, repeat home buyers will need to have owned their current home for at least 5 years.  The new extension, if approved by the full Senate and then voted on and approved by the House,  will allow buyers to have until April 30th 2010 to get a signed purchase and sales contract on a home  and then they will have until June 30th to close.

Waiting for a Vote in the Senate and the House – Say Yes!

All I can think of when I hear ”say yes” is the show “Say Yes to the Dress” which is a reality TV show about women buying their perfect wedding dress….you can imagine the drama that creates!  So, let’s create a little stir in the real estate market and ask our  politicians in Washington to “say yes to the extension!”   In recent months there was a flurry of activity as buyers needed to close on a house by November 30th in order to qualify for the $8,000 tax credit.  Now that it is early November and a closing on a home takes approximately 6 to 8 weeks,  the opportunity to make an offer on a house and meet the current deadline  is very unlikely and many buyers are waiting to see if an extension of the tax credit will be passed.

Income Limits May Be Raised – More People Can Qualify For the Home Buyer Tax Credit!

The proposal includes an increase in income limits and may help those at higher incomes decide to make a move, which would greatly help our Storrs Ct area real estate market - currently an individual can make no more that $75,000 and a couple cannot make more than $150,000 in order to qualify.  The new proposal would allow the real estate tax credit to be available to individual home buyers who earn up to $125,000 and couples can have a combined income up to $250,000.  As Connecticut real estate experts, we know that the first time home buyer tax credit has not had much of an impact on homes priced in the higher end of the real estate market.  Higher priced homes in Storrs CT and all  surrounding areas  like Coventry, Tolland and Columbia are having much more difficulty selling than homes in the lower price ranges and providing an incentive for move up and higher end buyers makes a great deal of sense for a sustained real estate recovery.

Fraud?  What? 4 year olds can’t buy a house?

Soooooo…….there is a bit of a problem, wish it was not true, but with all the excitement over the first time home buyer tax credit, there are some people trying to commit fraud – take the case of the 4 year old applying for the $8,000 tax credit for her first home purchase - really?  Did they not think anyone would notice a 4 year old filing for a tax credit?  And the best yet – at least 53 cases of IRS employees filing illegal or inappropriate claims for the tax credit?

Go Yankees!

Hopefully when the new bill is passed it will  tighten up on the documentation needed for actually getting the credit  – as the WSJ said “A lack of documentation requirements also makes this program a slow pitch in the middle of the strike zone for scammers”.   Now, I love baseball – our grandson is a good baseball player who is working hard to become an even better player and he has an uncle who is a coach in the Yankees AA program, so we know a bit about baseball and a slow pitch in the strike zone is NOT what you want your team’s pitcher throwing, so…………Go Yankees! Great win last night! And…….. hello Washington politicians!  Let’ get that documentation requirement corrected, this is a bill to HELP the economy, not give money to scammers.