First-Time Home Buyer
The Worker, Homeownership and Business Assistance (WHBA) Act of 2009 expands the first-time home buyer1 credit to $8,000 and extends the deadline for qualifying purchases to April 30, 2010. Additionally, if a buyer enters into a binding contract by April 30, 2010, the buyer has until June 30, 2010 to settle on the purchase.
Long-Time Resident Credit Added
The new law also provides a "long time resident" credit of up to $6,500 to those who:
- Do not qualify as "first-time homebuyers" but are buying a replacement principal residence.
- Must have owned and used the same home as principal or primary residence for at least five consecutive years of the eight-year period ending on the date of purchase of a new home as a primary residence.
New Requirements
Several new restrictions on purchases that occur after Nov. 6, 2009 go into effect with the new law:
- Dependents are not eligible to claim the credit.
- No credit is available if the purchase price of a home is more than $800,000.
- A purchaser must be at least 18 years of age on the date of purchase.
Additional Information
More information can be found by searching for the First-Time Homebuyer Credit on the Internal Revenue Services website at www.irs.gov.
1. A first-time home buyer is defined as abuyer who has not owned a primary residence during the three years up to the date of purchase.