Congress has passed new legislation that extends the home buyer credit and also makes some significant improvements. Below is a recap of the new program:
- Extends the first time home buyer credit of up to $8000 ($4,000 married filing separate) to first time home buyers for binding contracts written by April 30, 2010 and closed by July 1 ,2010.
- Expands the credit to grant a $6500 credit ($3250 for married filing separate) to current home owners purchasing a new or existing home under $800,000 between the time the bill is signed by President Obama and April 30, 2010. Current home owner is defined as having used the home sold or being sold as a principle residence for 5 of the previous 8 years.
- Increased income limits for either program to