Home Buyer Tax Credit has Been Extended to April 2010

This is an update to a previous post about the first-time home buyer tax credit being extended into 2010. Some new information has been released, regarding the extension of this credit. Here's a summary of recent events:

• On November 4th, the Senate unanimously approved a bill that would extend the home buyer tax credit until April 30, 2010.
• The House of Representatives approved the bill on November 5th.
• The credit cap for first-time home buyers is still set at $8,000.
  
• As far as the tax credit goes, the definition of "first time" buyer is a broad one. It includes anyone who has not owned a home in the last three years.
• To be eligible for the first-time buyer credit, you must sign a contract by April 30 and close by June 30.
  
• The bill also expands the credit to include current homeowners who want to move up to a new home.
• The credit cap for current homeowners buying a new home is set at $6,500.

Some lobby groups, such as the NAR, have been pushing for an increase in the tax credit amount -- from $8,000 to $15,000. So once again the government is subsidizing the housing market and reducing the down-payment burden on home buyers. Hmmmm ... isn't that sort of how we got into this mess in the first place?