As a repeat buyer, how do I qualify for the $6500 tax credit?

As of November 7, 2009, “repeat” or “move up” buyers now may qualify for 10% of the purchase price, up to $6500, in the form of a federal tax credit. This is part of the home buyer’s tax credit that previously was only available to first-time buyers but now has been expanded. To qualify, a “repeat” buyer must have resided in a home they used as their primary residence for a minimum of five consecutive years out of the past eight years. The purchase price of the new home cannot exceed $800,000 and annual income cannot exceed $125,000 (single filers) or $225,000 (married filing jointly). The new home must be used as the buyer’s primary residence and the cost of the new home being purchased does NOT have to be higher than the previously owned home. The buyer must be under contract by April 30, 2010 and close before July 1, 2010.

The tax credit is still available to first-time buyers of 10% of the purchase price up to $8000. A first-time buyer is defined as anyone who has not owned a home in the past three years. The April 30th deadline and income limits described above also apply to first-time buyers.

There are some exceptions for active duty U.S. military personnel, granting those deployed an extra year to claim the credit. For more information, visit Federal Housing Tax Credit.

It is a great time to buy and sell in Rochester! Our market continues to rank among the healthiest in the country – prices are stable, interest rates are low, homes are affordable and there’s a good supply of inventory. Contact a Nothnagle agent today to discover how both buyers and sellers Get More using Nothnagle Realtors.

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