There is terrific news for consumers thinking about purchasing a home! Congress has recently passed further legislation, as a part of the plan for stimulating the U.S. housing market, that makes the Federal tax credit of up to $8,000 now available to even more first-time buyers. In addition, certain individuals who presently own a home and want to purchase a new one may also be eligible for a Federal tax credit totaling up to $6,500.

The Extended Home Buyer Tax Credit extends and improves the existing law that expires on Nov. 30th. Both new and move-up buyers may now get the benefits of the Federal tax credit. Of course, this is over and above the current historically low home loan interest rates.

Outlining the new legislation’s particulars::

* The first-time buyers’ $8,000 has now been extended through April 30th, 2010. * Current homeowners are now eligible for the $6,500 tax credit, if they have lived in the home they are selling as their primary home for five consecutive years within the past eight years. * Income limits for qualifying buyers were increased to a range of $75,000 to $125,000 (for single buyers) and a range of $150,000 to $225,000 for couples. * Time has been added to make allowance for closing the home purchase transaction. If they have a legal contract by the last day of April, they will subsequently have until June 30, 2010, to close the transaction. The qualifying purchase price of the new residence has to be $800,000 or less.

Additional details:

* Tax credits grant a dollar-for-dollar reduction of taxes owed with any surplus funds available as a refund. The amount of the tax credit will be first applied to any tax liability for the purchase year. Then the amount remaining will be paid to the buyer. (For example a first-time buyer who owes $2000 in taxes would receive a payment of $6,000). * Any single-family home purchased to be used as a principal residence (including condos, co-ops) will qualify assuming that it is purchased by the last day of April, 2010 and closes by the last day of June, 2010. * The full amount of the tax credit is available for individuals who have an adjusted gross income of no more than $125,000 or $225,000 on a joint return. When income is greater than these figures, the amount of the tax credit is reduced until the upper limit is reached – $145,000 for individuals or $245,000 of joint income.

Jim Navary has been a freelance writer and researcher for over thirty years covering a broad range of topics. He is also a licensed real estate agent in the Commonwealth of Virginia specializing in real estate in the Tri-Cities area of Virginia and, in particular, Fort Lee, Virginia, area houses for sale.