New Update on The Extended $8,000 Home Buyer Tax Credit – Use Your VA Benefits to Qualify

I’d like to correct one of my earlier posts with more details emerging about the home buyer tax credit. Details are below. There are two new huge improvements to the credit I’d like to point out. First, the income cap for all new home buyers qualifying has been raised for $125,000 for individuals and $225,000 for couples, where previously it was $75,000/$150,000. This will include a LOT more buyers. And second, move up buyers who have lived in their house five years qualify for a $6,500 tax credit. Both of these changes make the tax credit available to tens of thousands of new buyers.

Here’s a summary of the changes for the extended tax credit:

Income caps for eligibility increases to $125,000 for individuals and $225,000 for couples.
The tax credit for first-time home buyers (anyone who has not owned in the last 3 years) stays the same as the lesser of $8,000 or 10% of the purchase price.
Eligible move-up buyers will have had to have lived in their current home for at least five years and the credit will be $6,500.
The credit runs from Dec. 1, 2009 to April 30, 2010, with an additional 60 day period to close escrow, so you will have to go into contract by April 30th buy can close up to June 30th.

So getting an $8,000 check if you buy before April 30th is a pretty huge motivator. It’s pretty generous. VA Loans require zero down in the first place. So it’s like getting paid $8,000 to buy a property. You could take that money and furnish or upgrade your property. Or pay off a car loan and be debt free! Pretty amazing stuff!

Give me a call (858-922-7899) or email (homeloan8@gmail.com) if you have any questions at all about getting approved for a VA Loan.

Warmest Regards,

Rob Chomentowski

Sr. Loan Officer (and VA specialist)

858-922-7899

homeloan8@gmail.com