Author: Doug Walker - VP of Sales, Nashville TN

Two Issues Of Importance

1. The current tax credit for 1st time homebuyers expires on November 30th, 2009.
2. There is currently no incentive for existing or move-up homebuyers to purchase a home with a similar tax credit

The current tax credit for first time home buyers expires on November 30th, 2009. If first time home buyers do not close on a home before December 1, 2009, they will not be eligible for the tax credit. However, a bill has been introduced to extend that time frame and allow all purchasers of principal residences to benefit as well.

Proposed Changes In The Bill:

1. Extend the current first-time homebuyer tax credit of $8,000 through April 30 of 2010. However, if you have a binding contract by that date, you will still qualify if you close within 60 days of deadline.
2. Extend a tax credit of $6,500 to existing homeowners or "move up" buyers in addition to the first-time homebuyers. The home you are leaving must have been used as you principal residence for at least the last 5 years.
3. Increase the income limitations to $125,000 for singles and $225,000 for married couples.
4. Purchase limit is $800,000.
5. Military waiver provision cancels recapture provision if the home does not remain your principal residence for at least 36 months.

Senators worked late into the night on Monday, November 3rd to clear the way for this bill to be signed by the President by voting to end any further debate.

We look for this bill to be signed by the President sometime this week.

Considering purchasing a home?
Check out the great resources on our web site or have a loan specialist contact you and discuss your options. www.churchillmortgage.com