Flash! Extension for First-Time Homebuyer’s Credit

I wrote about this credit’s expiration some time ago, (you can see this post for the original article) – and as anticipated, this past week Congress has opted to stretch out the expiration date for 7 months, through June 30, 2010.  Briefly, this credit provides up to $8,000 in credit for first-time homebuyers who have MAGI less than $150,000 (for married couples – $75,000 for single filers).

I haven’t seen any numbers to show what impact this particular credit has had on the housing market – but any impact it has had must have been minimal, albeit positive.  The housing market continues to be pretty dismal throughout much of the country, even in the face of continued reductions in mortgage rates, which have now dipped below the 5% level for 30-year typical mortgages.

So, if you weren’t quite ready to take the plunge and buy before December 1, you now have 7 more months to get ready (if you want to take advantage of this credit).

Image by Epix

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Jim Blankenship, CFP®, EA, is an expert in personal retirement, IRAs, and tax issues, with more than 20 years of experience in the industry.  . Read more from this author