For those homeowners looking to downsize into a downtown San Antonio condo, now may be the time. The home buyer tax credit was recently extended into May 2010 (the closing must occur before July 2010), so new homebuyers, as well as those homebuyers who have lived in their current residence for at least five years, can take advantage of the government stimulus offer.
Long-Time Homeowners get in on the Action
The homebuyer tax credit, which was originally only targeted at new homeowners or those who hadn’t owned a home for the previous three years, now includes “long-time homeowners,” or those who have lived in their home for at least five years. In other words, all those retirees looking to move out of their longtime home and instead settle into a downtown San Antonio condo can make out on this tax credit extension. The $8,000 tax credit still stands for new homebuyers, but another $6,500 tax credit is available for long-time homeowners.
Retirees Expected to Benefit from new Tax Credit
This is good news for retirees, and even better news for the real estate condo market of downtown San Antonio. And, luckily, most long-time homeowners have good credit, which means that they will likely be approved for a new mortgage. There are certain limitations to the tax credit, however; homes over $800,000 do not qualify.
Benefits of the New Law
The income levels have been extended for the new tax credit, though; homebuyers can now make up to $125,000 and still remain eligible for the full tax credit (it was $75,000 under the old law). Couples applying together can make up to $225,000 jointly (it was $150,000 under the old law). In addition, there is no stipulation in the law that states that the new home must be more expensive than the last, which is good news for retirees or for individuals simply looking to downsize. Other individuals that will certainly benefit from the new law include military personnel, as any military personnel serving outside of the country for at least 90 days in 2009 or 2010 will be granted an extension of one year to claim the credit.