Existing homeowners need to be aware that a recent expansion of the Federal buyer tax credit has created a possibility for existing homeowners. Current homeowners who have lived in their homes for 5 consecutive years out of the last 8 years are now eligible to receive a $6500 tax credit.
To qualify for the credit, these repeat buyers must sign a purchase contract by April 30th and close on the property by June 30, 2010. And there are income limits to be eligible for this tax credit: $125,000 for single buyers and $225,000 for couples. Also, the sale price of the home being purchased cannot be more than $800,000.
There is no requirement that homeowners must have sold their existing home to be eligible for the tax credit to buy a new home. However, if the homeowner wants to sell their current home before purchasinig a new one, they should think about putting their current home on the market right away. It typically takes at least 90 days to sell a house.
James M.Weichert, President and founder of Weichert Realtors, one of the country’s largest independent real estate companies, says about this new government incentive: “The expanded tax credit offers a great financial opportunity for existing homeowners, particularly those looking to trade up….Not only can you receive a large sume of money from the government, you’ll also likely purchase your next home for less money and at a lower interest rate than you could have in years past.”
If you currently own a home in Cardiff, Encinitas, Carlsbad, or Vista, think about taking advantage of this new tax credit for existing homeowners. And if you have any questions, please contact Marilyn Dashe at marilyndashe@cox.net.