U.S. HOMEBUYER CREDIT PROGRAM SUMMARY
First-Time Buyers and Existing Homeowner Buyer Credits!

See the updated information below - we'll continue to keep you posted with new updates!

The first-time buyer tax credit that has been in effect in 2009 was set to expire on November 30, 2009.  On November 6, new tax credit legislation was signed extending the first-time buyer tax credit with some modifications, and creating a new tax credit program for existing homeowners who are purchasing their next home.  This creates a whole new set of possibilities for home buyers, and creates a lot of new potential buyers for home sellers!

Important Dates

• Purchases eligible for the new homebuyer tax credits must be under contract before May 1, 2010, and must close on or before June 30, 2010.
• For new construction, the purchase date is considered to be the first date you occupy the home.

Tax Credit Amounts

• First Time buyer:  10% of purchase price of the home or $8,000 - whichever is less.
• Existing Homeowners:  10% of the purchase price of the home or $6,500 - whichever is less.

Eligible Buyers

• A first-time buyer cannot have owned a principal residence during the 3 years prior to the date of purchase.
• An existing homeowner must have owned and lived in their home 5 out of the preceding 8 years.  The new home does not have to be more expensive than the current home - the buyer can downsize or move up in size and value of home!
• Income limit of $125,000 per year for individuals (raised from $75,000 in the "old" tax credit program).
• Income limit of $225,000 per year for couples (raised from $150,000 in the "old" tax credit program).
• These income limits apply to both first-time buyers and existing homeowner buyers.

Properties That Qualify

• The purchase price of the home cannot exceed $800,000.
• Only principal residences qualify.  No second homes or investment properties.

Military Buyer Benefit

• Members of US military including Foreign Service and intelligence communities on extended duty, if they are stationed out of country for at least 90 days, are eligible to use the tax credit through April 30, 2011, after their return to the U.S.

UPDATED INFORMATION: 

Can existing homeowners use the new credit program to purchase a new primary residence and still keep their existing home?  YES!  As long as the new property is your principal residence, you may keep your existing home as a second home or income property.  That opens a lot of doors for you! 

The new tax credit program is brand new and this information is believed to be correct.  Buyers should contact their tax advisor to detrermine their eligibility and individual circumstances.  We'll continue to provide you with updates as we learn more details.

In the meantime, if you've been on the fence about buying a new home - don't wait!  With these tax credits, attractive interest rates and lower home sale prices - first-time buyers can really benefit.  For existing homeowners thinking of moving - your current home value may be lower but so is the value of the home you will buy.  Now is a great time to buy! 

Prudential ABSOLUTE REALTORS   

Toll Free 800-378-5558

info@pruar.com

Corporate & Sales Office:  311 E. Wisconsin Avenue,  Oconomowoc 

Walker's Point/Third Ward Office:  100 S. 1st Street, Milwaukee