What you should know about the  EXTENDED
      First-Time Homebuyer Tax Credit
       Brought to you by VAR and your local REALTOR association

     Congress and the President have extended and expanded the $8,000 tax credit for first-time buyers.     
      You now have until April 30, 2010 to sign a contract and qualify.  AND, starting November 7, many
      existing home owners also qualify.

•   The temporary tax credit is only available for home purchases that go to contract before May 1, 2010, and
     that close before July 1, 2010.
•    It's equal to 10% of the cost of the home, up to a maximum credit of $8,000. (For example, a home 
     purchased for $80,000 or more would qualify for the full $8,000 credit, while a $70,000 home would qualify
     for only 10%, or $7,000.)  But homes that cost more than $800,000 are ineligible for any tax credit.
•    This is a tax credit, which is even better than a tax deduction; it's subtracted directly from your tax
     liability.  If the credit is more than your total tax liability that year, you will receive a refund check for 
     the balance.  (Note that a married buyer filing separately is only eligible for up to a $4,000 credit.)
•    Eligible properties include anything that will be used as a principal single-family residence, including 
     condo's and townhouses.
•    First-time homebuyers can take advantage of the full $8,000 tax credit.  A first-time buyer is defined
     as an individual who has not owned a home the past three years.  For married joint filers, both must
     meet the first-time buyer criteria to take the credit on a joint return.
•    Existing homeowners who have lived in their current homes for five (5) consecutive years out of the 
     past eight (8) are eligible for up to a $6,500 tax credit when they purchase a new home.
•    There are income guidelines on the credit.  Individuals with an adjusted gross income up to $125,000
     (or $225,000 if filing jointly) are eligible for the full tax credit.  The credit is phased down for those
     earning more and is not available for those with an income above $145,000 (or $245,000 if filing  
     jointly.)              
         
  
  Consult with your REALTOR or Tax Advisor and visit www.VARealtor.com to learn more about the tax credit and State and Federal Loan Programs