THE FIRST TIME HOME BUYERS CREDIT HAS BEEN EXTENDED AND WILL NOW INCLUDE EXISTING HOMEOWNERS TOO!!!

Click on this link to get all the info:

http://www.realtoractioncenter.com/realtor-party/documents/2009-NAR-FAQ-Tax-Credit-Changes-1105-1236.pdf

On the fence about buying a new home? Some government aid is on the way to help spur sales.

Nov. 6 President Barack Obama signed a bill that extends the $8,000 first-time homebuyer credit and expands it to include some existing homeowners.

Under the expanded program, homeowners are eligible for a tax credit of up to $6,500 if they purchase a new home. To qualify, current owners will need to have lived in their prior residence for five consecutive years out of the past eight years. The credit would apply to home purchases under contract by April 30, 2010, as long as they close by June 30.

First-time buyers (and those who haven’t owned a home in the last three years) continue to be eligible for up to $8,000.

As for income limits, the new credit is available to individuals earning up to $125,000 or couples earning $250,000. That’s up from $75,000 and $150,000, respectively, for the current tax credit. The credit can be used only on homes that cost $800,000 or less, and cannot be applied to vacation or second homes.

Here’s what you need to know:

Attention sellers: More buyers expected
The new tax credit — coupled with low mortgage rates and the supply of affordably priced homes on the market — may give many people who had been ambivalent of buying that extra nudge to step into the market. And in contrast to the first-time homebuyer credit, the new $6,500 credit is available to a larger part of the population with higher incomes.

Plan out your timing now
The legislation allows buyers to claim the credit if the home purchase is under contract by the end of April and closes by the end of June. That might sound like a long time, but not in the world of home buying, says Tara-Nicholle Nelson, owner of Re-Think Real Estate. “I would tell them they should be shopping now,” she says.

If you qualify and want to take advantage of the tax credit, to be on the safe side, consider from now until March your window to buy a house, says Endres-Fein. Keep in mind that once you have an accepted offer, the closing process can take a while and can also be delayed for any number of reasons.

That’s because the real-estate market is headed into what is traditionally the slowest months for real-estate sales — October to April. Typically, sellers are advised that a home on the market in that time will probably get the least attention from buyers and attract lower offers than in busier periods, says Papasan. But the credit should renew interest in the market during those typically slow months — and compel sellers to take advantage of any influx of buyers.

Already in a deal? Check your status
Buyers who are smack in the middle of a transaction now or have already accepted a contract should pause and figure out if they can take advantage of the credit. The first thing they should do is call their real-estate agent or mortgage broker to find out if this money would be available to them and how they can apply.