First-time Homebuyer Tax Credit Annual Income Limits Increase

The extension for the first-time homebuyer tax credit brought many changes and one overlooked is the annual income limits increase on those seeking to buy a home. In the first round of the tax credit there was an annual income limit of $75,000 for an individual and $150,000 for couples looking to purchase a home with the first-time homebuyer credit.

The first-time homebuyer tax credit was seen as a success as it helped to breathe life into a struggling housing market by giving individuals and couples who may have been thinking of buying a home the reason to actually take the steps for purchasing a house.

With the extension of the first-time homebuyer tax credit the annual income limit has been raised to $125,000 for an individual and $225,000 for couples who wish to take part in the $8,000 first-time homebuyer tax credit.

There is also an addition of a $6,500 repeat homebuyer tax credit to anyone who has been in their current home for more than five years.

With the extension of the first-time homebuyer tax credit into next year, with a homebuyer having to be under contract by April 30th and close on the home by June 30th, as well as an increase in the annual income of those who can qualify for the tax credit there are broader opportunities for people who are thinking of buying a home.

Interest rates are at an all-time low and the extension of the first-time homebuyer tax credit as and addition of a repeat homebuyer tax credit, this is a prime time in which to not just consider purchasing a home, but actually taking the steps to do so since so many incentives are being offered.

Before putting a huge down payment on a first home it might be a good idea to create a strong weekly or monthly budget.  With the NFL season coming up some will think of buying season tickets or getting the NFL Sunday Ticket.  Others will avoid these costs by looking for NFL preseason games streaming online.  No matter what decision is made it is smart to step back and look at all options.