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$8000 Tax Credit
Included in Stimulus Bill
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President Barack Obama has approved The Homebuyer Tax Credit Extension which will extend
the Home Buyer Tax Credit until April 30, 2010. The Home Buyer Tax Credit has been expanded to include current home owners.
The income limits have also been changed.
Key features are:
First time buyers defined as not owning home in last 3 years
No repayment
of tax credit
Extends the First-Time Home Buyer Tax Credit of up to $8,000 to first-time home buyers until April 30, 2010.
Expands the
credit to grant up to $6,500 credit to current home owners purchasing a new or existing home between November 7, 2009 and April 30,
2010.
Two objections I think we are all encountering right now are buyers concerned about prices continuing to fall,
and worried about possible job layoff. One way to use this credit might be to take half the credit and make a principal pre-payment
on the mortgage, and take the other half to start a rainy day fund.
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| Involuntary Unemployment Insurance. Protects buyers against job loss. Click here for more information about this insurance plan. |