With the new home buyer tax credit set to expire at the end of this month, the Senate and House voted last week to extend the $8,000.00 New Home Buyer Tax Credit. The extension is valid for contracts entered into by April 30, 2010 that close no later than June 30, 2010.

Homeowners that have lived in their home 5 or more years now qualify for a $6,500.00 credit when purchasing a new home. Income qualifications have been relaxed, couples earning up to $225,000 a year and individuals earning up to $125,000 a year now qualify.

Buyers should note that if you stop using a home as your primary residence within three years you will have to repay the tax credit. I am sorry to say that if you are looking to purchase a home worth more than $800,000 the homeowner tax credit is not for you.

For more information about The First Time Home Buyer Tax Credit feel free to contact me.