$8000 Tax Credit is Extended through April 30, 2010, and it's been Expanded!

• By: Mary Miller
• Zillow Director Product Management, Mortgages

    The $8000 tax credit for first-time home buyers has been extended through April 30, 2010. It was previously due to expire November 30,
    2009. Not only has it been extended, but it has also been expanded to include more buyers.

 Details:

• The $8000 tax credit for first-time homebuyers is extended for those who sign a contract by April 30, 2010 and close by June 30, 2010.
• Homebuyers who have lived in their current residence at least five years are now eligible for a new $6500 tax credit on their primary residence.
• Couples earning as much as $225,000 a year and individuals earning up to $125,000 qualify. This is an increase from $75,000 for individuals and $150,000 for couples.
• Tax credit is limited to homes worth $800,000 or less
• Those who sell their new home or stop using it as their main residence within three years would have to repay the credit.
• Members of the military who have served outside the U.S. for at least 90 days from Jan. 1, 2009, to May 1, 2010, have an extended deadline of April 30, 2011.

 How to get the credit:

• Buyers can claim the credit on their federal income tax returns. If the credit exceeds their tax bill, the government will issue a payment.
• Those who want immediate refunds can amend their tax returns for 2008 to claim the credit.

 Added Bonus!

    Mortgage rates are at historically-low levels.  Combined with the tax credit, now is a great time to secure a super-low rate on a purchase loan. Find out what rate you qualify for on Zillow Mortgage Marketplace