Congress voted yesterday to extend and expand the current First-time Homebuyer Credit to include buyers looking to purchase a new principal residence who have owned their current homes for a minimum of five years.
The credit is equal to 10% of the purchase price of the home up to a maximum of $8,000 for first-time homebuyers (or those who have not owned a house in the past three years) and up to $6,500 for current homeowners who are looking to purchase a new principal residence.
The credit still will not apply to secondary or vacation homes and phases out for individuals with annual incomes over $125,000 and $225,000 for joint filers.
In order to qualify for the credit, a buyer must have a signed purchase agreement by April 30, 2010 and close by June 30, 2010.
The house is scheduled to vote on this bill today, although the Senate passed it by a 98-0 vote.
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