TAX CREDIT EXTENDED UNTIL 9/30/2010

The tax credit has been extended for those who have ratified contracts in place as of April 30, 2010 but were unable to close by the June 30th deadline. Short sales may be one of the reasons why some of the buyers were unable to meet the deadline. These sales can take as long as 120 days to close. In most cases the buyer is made to wait helplessly on the sidelines until the the bank has completed there evaluation. This ext stems from the 2009 Tax Credit that was originally issued. The highlights of the tax credit are as followed.....
* You must buy or enter into a binding contract to buy a principal residence on or before April 30th 2010. The home must close before June 30th 2010. (Which has now been extended until September 30, 2010).
*To be considered a first time homebuyer you or your spouse must not have purchased a home 3 years prior to the date of purchase.
*First time buyer maximum credit is $8000. If this is your second home the maximum credit you would receive is 6500
*To be considered a longtime homebuyer you and your spouse (if married) must have owned the home as a principle residence for 5 consecutive years out of an 8 year period.

Although this extension rules out any homebuyers that have just jumped into the market to purchase a home keep in mind this is a great time to buy. Interest rates are still holding steady at the lowest they have been in years. Being able to qualify for a bigger home, with lower payments because interest rates are at there lowest may be the best credit you can receive in the long run.

For more information on how to apply for your credit after you have purchased your home visit the IRS website at http://www.irs.gov/