Most of my clients know that the “First-Time Home Buyer Tax Credit” has been extended until April 30, 2010 but they have a lot of questions about the program and what it means for them.

Do I qualify for the credit?


First-time home buyers who purchase homes between November 7, 2009 and April 30, 2010 are eligible. To qualify as a “first-time home buyer” the purchaser or his/her spouse may not have owned a residence during the three years prior to the purchase.

Is the property I am interested in eligible?


The credit may be used for primary residences, including: single-family homes, condos, townhomes, and co-ops, purchased for $800,000 or less.

How much is the credit?


You can get up to $8,000, depending on the price of the home and the buyer’s income.

Is there an income restriction?


Yes, single buyers with incomes up to $125,000 and married couples with incomes up to $225,000, may receive the maximum tax credit.

What if I make more than the income restrictions?


Some buyers over the income restrictions may still be eligible for the credit. The credit decreases for buyers who earn between $125,000 and $145,000 for single buyers and between $225,000 and $245,000 for home buyers filing jointly. The amount of the tax credit decreases as his/her income approaches the maximum limit. Home buyers earning more than the maximum qualifying income – over $145,000 for singles and over $245,000 for couples – are not eligible for the credit.

What if I am in contract on a property but not closing until after April 30, 2010?


As long as a written binding contract to purchase is in effect on April 30, 2010, the purchaser will have until July 1, 2010 to close.