This administration has chosen to extend the first time home buyer tax credit a few more months. There will probably not be another extension, so qualified homebuyers must act on this now and so they can have a binding written contract on a home by the cut off date of April 30, 2010. They must then be able to close on that home by June 30, 2010 to reap the reward of that first time home buyer tax credit. This tax credit has been expanded so it incorporates not only first time home buyers, but additionally those who have not owned a home in the past three years. Additionally, home owners who resided in their currently owned home for at least five of the past eight years can qualify for a tax credit of up to sixty five hundred dollars ($6500). This is fantastic news for the tax paying public who thought they had lost out on the first time home buyer tax credit initially, and excellent news to some who could not quite qualify previously.

Income limitations for either first time home buyers or current home owners are the same, and that is $125,000 for singles and $225,000 for married couples. This first time home buyer tax credit extension is good news for many wanting to be home owners.

Here is a video that can make things clearer.