HomeBuyer Tax Credit Extended and Expanded: Will We See Another Surge in Home Sales and Increased Competition Among Home Buyers?

On Thursday, November 5th, Congress approved an extension and expansion of the first time home buyer credit which President Obama is expected to sign into law today.

Here is a summary of the new program:

- $8,000 First Time Home Buyer Tax Credit (with first time buyers defined as people who haven't owned homes in the previous 3 years) extended to purchases on or before May 1, 2010 with closings required before July 1, 2010.

- Current Home Owners who have owned and lived in their home for at least 5 years may now gain up to $6,500 in credits.

- Income Limits have been increased to $125,000 for single buyers and $225,000 for couples, from $75,000 and $150,000, respectively.

Sources: Wall Street Journal
Yahoo Buisness News