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Do I Qualify for the Homebuyers Tax Credit?

If you didn't qualify before, your chances just got much better. The first-time homebuyers tax credit, which was scheduled to lapse on December 1, will now live on until at least June 30, 2010. And the good news is that President Obama not only signed an extension of the law, but also expanded the rules to include more eligible homebuyers.

Under the new version of the tax credit, you would still qualify for an $8,000 rebate if you haven't owned a home during the past three years. While you'll need to sign a purchase contract before April 30, you won't need to close on your new until June 30th. In addition, income limitations were raised to include married couples earning up to $225,000 or single buyers with incomes not to exceed $125,000.

Furthermore, the biggest change is that current homeowners who have owned and occupied a residence for at least five of the past eight years can also claim a tax credit of $6,500 if they close on a new home by June 30. So, if you're in the market for a new place and think you might qualify under the new rules, get your credit score and personal financial situation in order now - 2010 looks like it's gearing up to be a great year to buy a new home.

on Sun, 2009-11-08 16:00