Home Buyer Tax Credit

On February 17, 2009 President Obama signed the American Recovery and Reinvestment Act (ARRA) of 2009 into law. As part of this legislation, Congress reinstated home loan limits to 2008 levels and has increased the maximum conforming loan limits for mortgages originated in 2009. This stimulus law also provided a new, temporary tax credit as an incentive for first-time home buyers. The credit was to be available to first-time home buyers for the purchase of a principal residence on or after January 1, 2009 and before December 1, 2009.

On November 6, 2009 President Obama signed HR 3548 or The Worker, Homeownership, and Business Assistance Act of 2009, a bill that extends and expands the federal tax credit passed its November 30 deadline until April 30, 2010. Additionally, existing homeowners who have lived in their homes for at least five consecutive years out of the last eight will be eligible for a credit that can total $6,500. For further details on the new tax credit program, including income limits and additional eligibility requirements, visit www.REALstoryNJ.com/Home-Buyer-Tax-Credit.