Senate Approves Extension and Expansion of Homebuyer Tax Credit

Yesterday the Senate voted 98-0 to extend the first-time homebuyer tax credit and to add a new group of buyers to the fold. The extension means buyers have until April 30, 2010 to sign a purchase agreement and until June 30 to close. The House will vote later today.

Previously only first-time buyers could qualify for a tax credit (worth $8,000). Now, buyers who have owned their current home for at least 5 years can qualify for $6,500 towards a new home. The $8,00 credit will go to both first-timers and those who haven't owned a home in three years. To qualify the homes must be less than $800,000 and buyers can make up to $125,000 per individual or $225,000 per couple (now capped at $75,000 and $150,000).