Tax Credits Passed and Limitations Expanded

Congress and the House voted to extend the first time homebuyer's $8,000 tax credit and they expanded the earnings limitations from: $75,000 (single) and $125,000 (married) $20,000 phase out. to $125,000 (single) and  $225,000 (married) witha $20,000 phase out.

They did add a cap this time around on the cost of the house to $800,000. (not great for those of us wanting to live in the NY, NJ and Ct. areas where homes are pricey but you can't have everything.

They also added a $6500 (married) and $3250 (single) tax credit if you have previously owned a home and that home being sold must have been used as a primary residence for the last 5 out of 8 years.

A binding contract to purchase must be in effect by April 30, 2010 and you must actually close by July 1, 2010.

While the $800,000 cap on a home price was a bit of an unwelcome surprise, it's still a tremendous incentive considering historicaly low home prices and interest rates. the big 3 are here and it's never been a better time to own a home.

 So if you are looking for a home in Basking Ridge, Harding, Bernardsville, Bedminster, Madison or the surrounding areas, call me at 201 259-4449 for help finding the home of your dreams.