Homebuyer tax credit extension near reality

By Jason • October 30th, 2009

According to a report later yesterday from the Wall Street Journal, members of the Senate have reached a tentative agreement to extend the first time buyer tax credit April 30, 2010. Qualified buyers must be under contract by April 30, 2010 and closed by July 1. Key to the bill’s success in helping the real estate market is the Senate now allowing move up buyers to  qualify for a new $6,500 credit. To qualify, a move up buyer must have been in their current home for a consecutive five-year period in the past eight years.

Think about this in terms of the average home price around Raleigh which fluctuates around $235,000. Using an FHA loan a buyer would be required to put 3.5% down ($8,225) and would have closing costs around $5,000. A $6,500 incentive cuts the move up buyers expenses by nearly 50%.

This will help Raleigh reduce it’s housing inventory and keep home prices stable through the winter which is key to our success. I know you are tired of hearing but folks, now is a great time to buy a home or to move up to a larger home.

Corey Boles and John D. McKinnon. Buyer Credit Gets New Life.Wall Street Journal on-line. 10/30/09. http://online.wsj.com/article/SB125678511901015147.html?mod=rss_Today’s_Most_Popular
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