If you're thinking of buying a new residence in the near future,

here's what you need to know now!

First, there are two parts to the new stimulus bill signed by President Obama on November 6:

1. The original $8,000 homebuyer tax credit for first-time buyers, which had been set to expire on December 1, 2009, is now extended through April 30 of next year Buyers will have an additional two months, until the end of June, to close IF, and only if, they have a completed signed contract (Purchase Agreement) in place by April 30, 2010. First-time buyers are identified as those who have not owned a home during the prior 3 years and regularly file income taxes. This new homebuyer tax credit plan increases the income limit for couples with income up to $225,000, and to $125,000 for single purchasers.

2. In addition, and for the first time, the new tax credit plan allows buyers who already own a home to be eligible for a credit. A $6,500 maximum credit will be available to existing homeowners who have lived in their current residence for five consecutive years of the prior eight years (this means you could have sold your home up to 3 years ago IF you lived in it for the 5 years previous!). There is a cap on the sale price of the new home at $800,000.

The legislation takes effect December 1 (date of closing) and is not retroactive. Note that BOTH credits are available only for primary residences, not second homes or investment properties.

For more information go to the government website for Questions and Answers: Homebuyer Tax Credit

If you still have questions, call me - I can help! 651-407-7864

First time homebuyers take note:  Time is running out for the $8000 tax credit!  All transactions must CLOSE by November 30, 2009 to take advantage of this credit.  Therefore, if you haven't already selected the home you wish to purchase I would highly recommend you get out there and find one.  A typical real estate transaction takes from 45 to 60 days to close and we are coming up on the barrier shortly.

Call your REALTOR today and make plans to get out there and find your new home!  There are still great buys out there despite the fact that the market, especially in our local Twin Cities area, has stabilized.  We have less listings than we've had in a long time and more pendings and solds than there have been in over a year!  Call today to find out if you can qualify for a home mortgage and for the First Time Home Buyers $8000 Tax Credit:  651-407-7864 

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