It is now official; the current home buyer tax credit has been extended. In addition, the new plan is an expanded version of the original plan that allows some existing homeowners to take advantage of the credit as well.

The latest version of the credit still provides up to an $8,000 tax credit for first-time homebuyers. However, it also provides up to $6,500 for existing homeowners looking to trade up to a bigger primary residence and who have already lived in their current home for five years. This expands on the amount of home buyers who can now take advantage of the tax credit.

In addition, to qualify for the full credit, homebuyers must have adjusted gross income of less than $125,000 or $225,000 for married couples filing jointly.
Furthemore, the credit will only apply to homes sold for $800,000 or less.
Under the new plan purchase contracts must be signed by April 30, 2010 (extended from November 30, 2009). However, the purchases have until June 30, 2010 to close in order for a buyer to qualify for the credit.

The expansion of the home buyer tax credit means that a potential new wave of additional first time home buyers can now still take advantage of this special tax credit. While also now allowing existing homeowners to take advantage of the credit as well. How this will affect the home buying market over the next year is to be seen. However, for now we know that home buyer tax credit will be available until mid 2010. As additional information is available we will present it on this important housing issue.

With signing of the American Recovery and Reinvestment Act of 2009 into law by President Obama, FHA loan limits have been reinstated to the loan limits of 2008. What this means is that Maricopa and Pinal will have their loan limits raised from the current level of $271,050 back to $346,250. This will help more homeowners be able to qualify for an FHA loan in 2009 for both the purchase and refinance of a home loan.