Dear Just Be: What's all the buzz about buying a home soon to help save money?

The "buzz" that you may be hearing is in reference to the Extended Tax Credit. Congress passed legislation that has extended the First-Time Home Buyer Tax Credit of up to $8,000 to first-time home buyers until April 30, 2010. If you are not considered a First-Time Home Buyer, you may qualify for the $6,500 credit that has been extended to current home owners who purchase a new or existing home also before April 30, 2010.

To see if home ownership, under the Extended Tax Credit, applies to you, consider the following though:

1. The tax credit applies to primary residences, including: single-family homes, condos, townhomes and co-ops.
2. The $8,000 and $6,500 figures stated above are the maximum allowable credit for first-time and current home buyers respectively.
3. The price of the home and the home buyers income determine the amount of the tax credit. (The amount of the tax credit DECREASES as the home buyer's income INCREASES towards ))allowable income level.)
4. To qualify, there must be a written binding contract for the property by April 30, 2010 and the purchaser must close by July 1, 2010.

Who is considered a first-time home buyer or an eligible current homeowner?
To qualify as a first-timer home buyer, the purchaser or his/her spouse may not have owned a residence during the three years prior to the purchase. Qualified current homeowners are those purchasers who have used the home being sold or vacated as their principle residence for five consecutive years within the last eight years.

For more details concerning the Extended Tax credit visit http://www.irs.gov/ or http://www.realtor.org/.