The bill essentially remains intact but has a handful of important changes:
Previous Provisions
New Provisions
Effective Date
January 1, 2009
November 7, 2009
Deadline
Close before December 1, 2009
Contract signed before May 1, 2010, mustclose before July 1, 2010
Members of the uniformed services, foreign services, and intelligence employees who served an extended service of 90 days will have until April 30, 2011 and June 30, 2011.
Amount
First-Timers: Maximum of $8,000 or 10% of sales price
Prior Owners: $0
First-Timers: Unchanged
Prior Owners: $6,500 if lived in prior home for at least 5 consecutive years of past 8 years
Income Limit
Individual: $75,000
Couple: $150,000
Individual: $125,000
Couple: $225,000
Other Restrictions
Home must be primary residence for at least 3 years. If home is sold or buyer moves before 3 years, must re-pay full $8,000.
Buyer must be at least 18 years old and not classified as a dependent for tax purposes
Home must cost less than $800,000
Home must be primary residence for at least 3 years. If home is sold or buyer moves, before 3 years, must re-pay full amount of credit. Exception for military, foreign services, or intelligence with extended 90 days service overseas.
How to claim
If purchased in 2009, by amending 2009 tax return or claiming on 2010 tax return
If purchased in 2010, by amending 2010 tax return or claiming on 2011 tax return
Earlier this year, KW Research conducted a study of first time-buyers and here’s a few of the findings:
The median age was 28, significantly down from where it was four years ago at 32.
Location or Neighborhood was the No. 1 “must-have” for 36% of buyers.
25% saw 5 or less homes before writing an offer, the average buyer saw 10 homes.
2 out of 5 first-time buyers purchased a distressed property.
2 out of 3 sellers paid at least part of the buyer’s closing costs.
1 in 4 had help from their family for the down payment.
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