Guide Me Home to North Jersey

On November 6, 2009, Congress passed an extension of the law that gives an $8,000 tax credit to first time home buyers. It was set to expire on November 30, 2009. But this is more than an extension. The new law changes income limits, allows homeowners to receive a credit of up to $6,500 if they purchase a new principle residence, restricts home price, and changes deadlines among other things.

Below is a brief summary and explanation of this news. This writing does not pretend to discuss all qualifications, specifics, and provisions of the law and should not be used as any type of legal or tax advice. (As with all legal and tax related issues, you should consult your tax preparer or lawyer before doing anything).

Income limits: The new limits, which apply to both first-time and repeat buyers who purchase after Nov. 6, are $125,000 to $145,000 for singles and $225,000 to $245,000 for joint filers as reported by the New Jersey Association of Realtors.

Credits: The $8,000 credit for first-time buyers remains, but the law now gives repeat buyers up to $6,500. It requires that they have lived in their home for at least 5 years in a row in an 8 year period.

Home price: There is an $800,000 ceiling on the sale price of the house in order to be eligible.

Deadlines: The house must be under contract by April 30, 2010 and be closed by June 30, 2010.

If you are planning to purchase a new home in the next 6-8 months, I invite you to call me and discuss your options. You may email me at mjbenedetto@turpinrealtors.com or call me at 908-234-9100, x203. The time to buy equals a large inventory plus low mortgage rates plus the tax credit extension!

Posted by:Mary Jane Benedetto