All the people that I know whether they are home buyers or not, as informed citizens, know already that the tax credit of $8,000 for 1st time home buyer has been extended by Obama Administration until April 30, 2010.  Well, but what about the $6,500 existing home owner credit?

Some do, some don’t and even if some do know of this, I am constantly finding myself explaining and clarifying of who qualifies and what the requirements are.  So, here are some things that I get asked all the time:

1.  Who qualify for the existing home credit of $6,500?  Here is the direct quote from National Association of Realtors: 

“Who Qualifies for the Extended Credit?

• First-time home buyers who purchase homes between November 7, 2009 and April 30, 2010.
• Current home owners purchasing a home between November 7, 2009 and April 30, 2010, who have used the home being sold or vacated as a principal residence for five consecutive years within the last eight.”

 2.  Can the purchase be 2nd residence?

No.  $8,000 1st time buyer credit always been a primary residence requirement, duh.., what else could it be, I mean they have never owned a home… and as you read from the above, the existing owner credit also requires the purchase to be the primary residence. 

3.  Who qualifies as a 1st time buyers?

Obviously someone who have never owned a home ORwho have not owned a home in last 3 yrs.  (did you know that??)  Ok, so you have been an apartment for last 3 yrs, let’s get you on a house hunting outings^^

4.  Extension is to April 30, 2010.  Do I need to close by then?

No.  As long as you get under contract by April 30, 2010, you will have until July 1, 2010 to close.

5.  Is their purchasing price limit?

Yes.  Under the Extended Home Buyer Tax Credit, credit may only be awarded on homes purchased for $800,000 or less.   um…. 

6.  What is the income limit?

Under the Extended Home Buyer Tax Credit, which is effective on November 7, 2009,  single buyers with incomes up to $125,000 and married couples with incomes up to $225,000—may receive the maximum tax credit.

These income limits have changed from the 2009 First-Time Home Buyer Tax Credit limits –for single buyers with incomes up to $75,000 and married couples with incomes up to $150,000—may receive the maximum tax credit.

So far these are the FAQ’s of the new and extended tax credit.  If I come across more good questions to post, I will edit this post.