The HOMEBUYER TAX CREDIT will expire at the end of this month.  There is still time to take advantage of this "blue-light special" that is pointed at your choice of home, but first . . .

1. You must find a house.
2. You must have a signed sales contract dated no later than April 30, 2010.
3. You must close on your home purchase by June 30, 2010.

There is NO indication that the tax credit, which has driven existing home sales to the highest level in two years, will be extended.

 

Here's how it works:

Maximum Purchase Price -- $800,000

Income Caps -- 

• Single tax filers -- up to $125,000 -- are eligible for the total credit amount.  Those who earn more than this cap can receive a partial credit; however, single filers who earn $145,000 and above are ineligible.
• Joint filers who earn up to $225,000 are eligible for the total credit amount.  Those who earn more than this can receive a partial credit; however, joint filers who earn $245,000 and above are ineligible.

The Tax Credit Amount --

• $8000 for first-time buyers (have not owned a home in the past 3 years)
• $6500 for current homeowners (must have lived in their home as a principal residence for 5 of the past 8 years).