Home Buyer Credits Extended and Expanded

On November 6, 2009, President Obama signed the Worker, Homeownership, and Business Assistance Act of 2009. Among other things, the Act extends the $8,000 first time home buyer credit for homes purchased or under contract by April 30, 2010. In addition, a new smaller credit of $6,500 will now apply to families that have lived in their homes for at least five years and purchase another home between November 6, 2009 and April 30, 2010. Of course, there are restrictions and limitations on both credits. Check out NAHB’s new website Home Buyer Tax Credits for an excellent summary of both credits.

It is the President’s intention that expanding the Home Buyer Tax Credits will help to continue the sale of homes which will, in turn, reduce the inventory of unsold homes and help home prices continue to increase across the country. The White House points out that residential housing investment grew 23 percent in the third quarter, one of the contributors to positive economic growth.