It’s the latest news!  The senate has come up with a deal to extend the 2009 first time home buyer tax credit incentive into 2010!  It’s not official yet… but I say “yet” because it looks very promising.  You know how it goes, it may get warped and manipulated into something else along the way, but this is the latest news on the first time home buyer tax credit…

The initial plans are to extend the expiration date and slightly modify how it works.  Instead of the first time home buyer tax incentive expiring on November 30th as expected, you will now have to have a signed purchase contract by April 30th, 2010.  So, you must be IN CONTRACT by April 30th, 2010.  Then they are allowing an additional 60 days to complete the sale and close no later then July 1st, 2010. 

I personally am very grateful for this extension.  My husband and I have been scrambling trying to help my parents find a buyer for this home we live in (their house) and let me tell you… we are running out of time.  I was going to be extremely disappointed if we missed out on this tax credit.  Now I feel a bit more relieved and not so much pressure.

In addition, there are talks of another perk to be worked into the first time home byer tax credit that would benefit sellers.  The credit will now offer a $6,500 tax credit to home owners who sell their primary residence that they owned for at least 5 consequtive years in the past 8 years.

The income limits will also be raised.  Individual from $75,000 to $125,000 and couples from $150,000 to $250,000.

Other people are saying that the increase in income may be too generous… giving a helping hand to those who really do not need it.  On one hand, I agree with that.  I feel like this government money should only be used to help those in need, not those who make enough money that they could clearly adapt to whatever income problem they might have because of the economy.  On the other hand, there are people who have had sudden income changes because of the economy and even those who were well off, are now stuck in homes about to go into foreclosure.  Maybe this well help them avoid the foreclosure?  I also suppose if it gets more movement into the housing market and more money flowing, it may be of some help to the economy… and therfor… everyone.

All in all, my husband and I are very pleased to hear about this extension.  Now it’s just a matter of them making it official.  Hopefully they do.