Help from Uncle Sam

First-Time Home Buyers Have Unprecedented Opportunity

November 6, 2009

The recovering housing industry has been given another hand up by the federal government.

This week, Congress passed legislation which will extend the $8,000 credit for qualified first-time home buyers who have entered into purchase contracts by April 30, 2010.

The tax credit offer has been expanded to include a $6,500 credit for people who already own their homes and want to purchase another primary residence. Homeowners must have lived in their homes for five consecutive years out of the last eight to qualify for the credit.

In addition, the new legislation increases income eligibility limits to $125,000 for individuals and $225,000 for married couples.

The bill also provides new tax relief benefits for cash-strapped home builders.

Get more details from the IRS here.