Home Buyer Tax Credit Extended, Expanded

The Home Buyer Tax Credit on Nov. 6, 2009 was extended and expanded. The current guidelines of The Home Buyer Tax Credit requires a potential buyer to be under contract by April 30, 2010. The closing must occur by June 30, 2010. For qualifying purchases in 2010 the borrower has the option of claiming the credit on their 2009 or 2010 tax return. This is for first time home buyers defined under the HUD guidelines.

The Home Buyer Tax Credit has evolved from The Housing and Economic recovery Act of 2008. The Home Buyer Tax Credit in 2008 was a $7500 tax credit originally in the form of a no interest loan. It was to be paid in 15 equal payments beginning in the 2010 tax year.

For 2009 the tax credit was increased to $8000 and does not have to be paid back. This of course is only if the borrower uses the property as their primary residence and for a minimum of three years.

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