The U.S. Congress has approved a bill that extends and broadens tax credits that were set to expire this month. This is great news not only for home buyers but the American economy as a whole.  The $8,000 tax credit has been a major factor in the turn around in the economy over the last 3 months.

The bill extends the credit for contracts signed by April 30th and closing by June 30th. Income limits are expanded to cover additional buyers; couples earning up to $225,000 and individuals earning up to $125,000 annually now qualify. It also creates a new $6,500 credit for buyers who have owned their current home for at least five years. Homes worth more than $800,000 wouldn’t be eligible.

New Tax Credit Parameters:

• As it now stands, the federal tax credit will be extended through April 30 2010, with a 60-day extension if a binding contract is in place prior to the deadline.
• First-time home buyers will continue to be eligible for a tax credit of up to $8,000, while existing homeowners will be eligible for a reduced credit of up to $6,500.
• To qualify for the $6,500 credit, existing homeowners must have lived in their current residences for at least five years.
• The bill also increases the qualifying income limits from $75,000 for single tax filers and $150,000 for joint filers to $125,000 and $225,000, respectively.
• The purchase price of the home is capped at $800,000 in both instances.
• Under additional provisions included in the bill, taxpayers can claim the credit on purchases completed in 2010 on their 2009 income tax returns.
• The legislation maintains the provision that home buyers do not have to repay the credit provided the home remains their primary residence for 36 months after purchase, and waives this requirement for active duty military personnel who move due to a military order.

President Obama is expected to sign the bill as early as Friday, Nov 6th.

What are you waiting for?  Interest rates are at record lows and home prices are still attainable.  Get out there and search for Denver Houses for Sale.  You can also search by Denver Neighborhoods or Denver Lofts for Sale.

Best of luck with your home search!