More Home Buyers Eligible for Credits
Saturday, Nov 7, 2009 @10:08pm CST
(Springfield, MO) -- Some home buyers can now get thousands of dollars from a federal tax credit. President Obama signed a bill to expand and extend the perk for first-time purchasers Friday.
Now, the new law extends the incentive to purchases through the end of April. The legislation also lets long-time home owners cash in on the deal.
Janice Jones has a chance to save thousands of dollars on a house.
"I have three girls and they moved out, graduated from college," said Jones. "It's time for me to get a smaller house."
A new law recently opened the home buyer tax credit to long-time home owners.
To qualify buyers must have used their home for at least five consecutive years out of the last eight years. The place they buy also has to be their new primary residence. The credit for these home owners has a maximum of $6,500.
Under the changes, the credit for first-time home buyers is still available, for up to $8,000. Purchases qualify for the tax perk through the end of April.
"Kind of helps us keep our savings account back where it should be," said Joe Furtak, a first-time home buyer.
"I think it will increase the market for sure," said Candy Turnbull, a local realtor.
Although both the Furtaks and Jones say the credit didn't play a role in their decision to buy, they say the money will help them keep their pocketbooks on track.
The law also expands the credits to include people with higher incomes than before.
The extension was part of the bill to extend unemployment benefits.
Senator Kit Bond (R-Missouri) issued a statement on the matter writing: "I object to including an expansion of the homebuyer tax credit program in the bill, which comes at a high cost to taxpayers, has been ripe with fraud and abuse, and runs the risk of recreating another housing crisis."
The new law includes measures to protect against potential abuse of the program.
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