Take advantage of the $8,000 tax credit for first-time home buyers and the $6500 credit for current homeowners before it expires on April 30, 2010. As interest rates are at historical lows, this is the best “buyer’s market” you’ll see for quite some time.
1) First-time home buyers are eligible for up to $8,000 on the tax credit and there’s also a credit of up to $6,500 for homeowners who have lived in their homes for five years.
2) The tax credits expire on April 30, 2010, but home buyers under contract by April 30 would be able to qualify as long as they complete the sale within 60 days. This will be the third life of a home buyer tax credit that has been in place since mid-2008. Lawmakers have pledged that this will be it’s last life so move on it.
3) The tax credit probably won’t affect the high-end of the market much. The tax credit phases out for home buyers with incomes above $125,000 for single filers and $225,000 for married couples. Additionally, homes that cost more than $800,000 aren’t eligible for the credit. So, expect this credit to make the biggest difference in the $300,000 to $500,000 range.
Link to more info – http://rismedia.com/2009-11-08/obama-signs-homebuyer-tax-credit-extension/