First time home-buyer tax credit extension bill passage on November 3rd. Let’s hope.

If Senate Majority Leader Harry Reid’s (D) prediction last week is correct we will have a new bill tomorrow or by this week.  It will extend the tax credit to April 30, 2010.  The original bill expires at the end of November 2009.   In February 2009 the $8000 first-time home buyer credit for married couples (individuals $4000) was put into law in an effort to provide the economy with an economic stimulus.  The extension if approved will allow, more Americans to qualify for the tax credit including those with higher incomes and even those who currently own homes.

A credit of $6500 is provided, if you are a homebuyer and lived in your previous residence for five years.  Additionally, for high income earners, individuals earning up to $125,000 annually and couples earning up to $225,000 annually now qualify.  The limits under the present bill are $75,000 and $150,000 respectively.

In case the bill is not passed, then you would need to purchase your home by the end of November.  Regardless of whether there is an extension, the bill has no provision for vacation or rental properties.  This is strictly for your primary residence.

If you are feeling confident about the future and can afford to buy a house at these historically low prices join the more than one million people who have claimed their share of the tax credit.