The federal government has extended the first time homebuyer tax credit and has added a tax credit for current homeowners. The $8,000.00 first time homebuyer tax credit has been extended until at least June of 2010. The FTHB tax credit has been very successful and very popular and has helped to stimulate the entry-level of the real estate purchase market. Home values are very attractive nationwide and low rates coupled with lower home prices and the FTHB tax credit make buying a home as affordable as it has been in recent memory.
Additionally if a current homeowner wishes to sell his or her home and buy another home a $6,500.00 tax credit is available. The homeowner must have owned the home for at least five years. This existing homeowner tax credit should help to stimulate the middle of the real estate market comprised of those consumers who wish to "trade up" or "trade down".
Most experts feel that until real estate values stabilize or show a slight increase uncertainty and lower consumer confidence will continue.
The tax credits for future and existing homeowners are applicable to all available mortgage products including conventional mortgages, FHA mortgages, VA mortgages and Rural Housing mortgages. Buyers can refile their most recent year's federal tax return to immediately receive the tax credit.
