Real Estate News Online

First Time Home Buyers Credit Extension – A Shot in the Arm for Buyers

Finally the long wait is over. The extension of the first time home buyers credit has now become a reality. The bill, officially known as the Worker, Homeownership, and Business Assistance Act 2009 became a law once it got the signature of the US President Barack Obama on Friday. Earlier the credit period was supposed to end on November 30, 2009. But according to the new legislation it is extended till April 30, 2009.

Who Benefits
This new law about first time home buyers also benefits those who are planning to buy a new property.

In case you come under the second group then all you need to do is to reside at your current address at least for five consecutive years.

What are the Benefits
The main beneficiaries of this law are obviously the new buyers. They will get a tax credit of up to $ 8, 000. However, your annual income should be $ 125, 000. All you need to do now is to sign the agreement papers and other paper works by May 1, 2010. In reality you will only need to finalize the deal by the end of June. These clauses will also hold true in the case of current home owners. The only difference is the credit amount. For current owners the amount is $ 6, 500. Just remember if you want to take advantage of this law you will have to buy a primary property that is worth less than $ 800, 000.

Though there are some who are terming this new legislation to be a definite ‘evil’ for current economy, right now it is the buyers who find it rather a boon.