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Mortgage Fearbusters 1

Posted by  on Feb 08, 2010
 

Q: I've been really bummed about missing out on the tax credit for new home buyers, but my brother (who wants me out of his condo) tells me it's been extended, and that even people who already own homes can get it. What's the deal?

A: Congress extended the tax credit for first-time buyers to other qualifying buyers (including prior and current home owners) who sign a contract to purchase a home no later than April 30, 20010. Closing must occur no later than June 30, 2010--the tax credit program's new expiration date. Check out the IRS update for details, and contact mortgage lenders to get mortgage quotes and learn more about mortgage options.

Q: I owned a home from 1997 until 2007. Am I eligible for a home buyer tax credit under the extended program?

A: Yes, although the tax credit for eligible current or previous homeowners is up to $6,500, and you must not have gross income exceeding $125,000 if single, or $225,000 if married. Current or prior homeowners must have owned a home for five consecutive of the last eight years. The combination of low interest rates and the tax credit provides great opportunities for getting a mortgage and buying a home. For the record, first time buyers are defined as anyone who has not owned a home in the past three years, so those who've previously owned a home may also be eligible for the full tax credit of $8,000.

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