The original first-time home buyer credit that was launched in the midst of the worst U.S. economic crisis since the Great Depression was such a success that Congress agreed to extend and expand this housing rescue program, with the new deadline set for April 30, 2010. For the purposes of this legislation, a first-time home buyer is someone who has not had ownership of a primary residence in the three years preceding the intended purchase. For married couples, this restriction on prior ownership status applies to each party, thus if either spouse has owned a home within three years, the couple does not qualify.
However, ownership of a vacation property or a house used for rental income that is not your main place of residence does not disqualify you from participating in this credit. The tax credit also applies for both new and existing home purchases, as long as the purchase is made prior to the April 30, 2010 expiration. The purchase date is considered to be the time that the deal on the house is closed, when the property title is passed to the new owner.
Those under 18 years old or who are considered dependents for tax purposes are ineligible for this $8,000 credit. Now is an ideal time to make a home purchase because prices are historically low and this is your last opportunity to capitalize on this generous tax credit. Once you are ready to make the plunge as a first-time home buyer, check out Homethinking website for help finding the best lender for your mortgage.