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Although nothing has been formally passed, The National Association of Mortgage Brokers issued this update on the $8k tax credit yesterday.

October 30, 2009 – The $8,000 first-time homebuyer tax credit is set to be extended until April 30, 2010.  The Obama Administration has urged Congress to pass legislation to extend the program from its original December 1, 2009 deadline.  In addition, legislation may provide a tax credit for some current homeowners.  NAMB will continue to monitor legislation and will inform members when the extension is formally enacted. 

http://nationalmortgageprofessional.com/news14521/namb-legislative-alert-first-time-homebuyer-tax-credit-verge-extension

Under the terms of the agreement, the deadline for first-time homebuyers to claim the $8,000 credit would be pushed back to April 30, 2010.  But the term “deadline” doesn’t mean the same thing as it does in the current credit. The Senate agreement stipulates that buyers must have a sales contract on a house by April 30 to be eligible, but it gives them an additional 60 days to close the purchase.

That means New Jersey FHA Mortgage buyers will have until approximately until the end of July 2010 to be CLOSED on their homes in order to receive the $8,000 first-time buyer tax break.  Wow!!!

Here are some quick questions and answers about the tax credit.

What is the home buyer tax credit? It is a tax refund for 10% of a primary home’s purchase price (up to $8K).

Who is eligible to receive the credit? First-time home buyers and those who have not owned a principal residence in the last three years prior to purchase. See the IRS website for more detail.

Do income limits apply? Yes! The full amount is given to individuals who make up to $75K and married couples who make up to $150K per year (adjusted gross annual income). The credit amount phases out between $75K and $95K for individuals; $150K and $170K for joint filers.

If you want to take advantage of the home buyer tax credit, you need to act fast! Keep in mind it’s typically 45-60 days to close on a traditional real estate transaction (short sales can take much longer).

How do I qualify for a New Jersey Mortgage? To determine if you qualify, you should fill out this Secure Online Application and you will be well on your way to getting a New Jersey Mortgage loan.

Please contact us at 201-943-6800 to schedule your FREE No-Obligation Consultation where we will meet to tailor a program to fit your needs and comfort level for monthly payments and investments.

If you would like to get started now please fill out a Secure Online Application and we will contact you to set up your free consultation and get you into the home of your dreams with the best terms available…regardless of your credit!

I hope you have enjoyed this blog.

Until next time,

Tony

201-943-6800

P.S. Also, make sure you register for our Insider Mortgage Secrets, browse our HomeBuying Resources section and fill-out a free no-obligation secure online application or call our Edgewater, New Jersey office in Bergen County (New Jersey Gold Coast) at 201-943-6800 with any questions you have.

P.P.S. CLICK HERE to check out our FREE Credit Repair Program.