First Time Homebuyer Credit Could Help Out Existing Homeowners

Congress is moving closer to approving an extention for the first time homebuyers credit, but the plan would also help out people who already own a home.
It’s not set in stone just yet.

Now longtime homeowners like Amy Ganer who is on her sixth house may get a break from uncle sam thanks to a new bill making it’s way through congress.

“I’m very excited about that—that would be wonderful if we could take advantage of that credit”.

The credit Garner is referring to amounts to 6,500 dollars for current homeowners who “step up” to a new house.

But homeowners would have to have owned their previous house for seven years—a number still under dispute.

It would also extend that first time homeowner credit of 8-thousand to April 30th of next year.

More people will qualify because salary limits are being raised to 125,000 for singles and 225,000 for couples.

Remax realtor Evon Hammet says the homebuyers credit has done wonders for sales and has people scrambling right now.

“We’ve seen just an outpouring of first time homebuyers that are racing—trying to beat the clock, trying to get the closing before November 30th”

“he first time homebuyers credit has been immensely successful but is not without fraud.  According to the treasury inspector general for tax administration, 19,000 filers had not even purchased a home.  and an estimated 74,000 filers claiming a total of 500 million dollars in credits may not have been first time buyers.“

Some like Garner wonder if the new bill would be retroactive like the original first time homebuyers credit.

But with a tentative start date of December 1st it doesn’t appear that that is likely.

The senate has yet to pass the legislation but the word on capital hill is that could happen any day now. 
After that the bill must pass in the house before it becomes law.

The senate has yet to pass the legislation but the word on capital hill is that could happen any day now. 
After that the bill must pass in the house before it becomes law.