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  Homebuyer Tax Credit Extended &
Expanded
Expansion of Credit to Benefit Existing Homeowners
- November 8th, 2009
WASHINGTON - Nov. 6, 2009 - President Obama signed H.R. 3548 this morning, enacting into law an
extension, and adjustment, of the $8,000 tax credit for first-time buyers. Among other things, the
extension adds money for certain move-up buyers; creates one deadline for signing a contract and a
later deadline for closing; changes income requirements; and limits a purchased home’s cost to
$800,000.
First-time homebuyers
Most details for first-time homebuyers mirror the rules currently in existence. The maximum tax credit
remains $8,000, and anyone who has not owned a home within three years is a “first-time buyer.”
• A purchase must be under contract by April 30, 2010.
• A purchase under contract by April 30 must close no later than June 30, 2010.
• After Dec. 1, 2009, income limits rise to $125,000 for singles and $225,000 for married couples; up
from limits effective through Nov. 30 of $75,000 for singles and $150,000 for married couples.
Current homeowner tax credit
An existing homeowner who purchases a home may now claim a tax credit of up to $6,500. To qualify, that
owner must have owned and used the same residence as a principal residence for any consecutive five-
year period in the previous eight years.
• This new tax credit is effective immediately - but you must have a home under contract by April
30th!
• Personal income limits, maximum home value, and contract/closing deadlines are the same as those for
first-time homebuyers.
Florida Homebuyer Opportunity Program
Under FHOP, first-time Florida homebuyers can obtain interest-free bridge loans to access their federal
tax credit before they complete a home purchase, enabling them to use that money upfront for
downpayment and closing costs. Once buyers submit their returns to the IRS and receive their tax credit
money, they repay their loans to the state.
The Florida Realtors-backed program came out of the 2009 session of the Florida Legislature. However,
as part of the 2009-2010 budget year, did not become effective immediately. They tax credit extension
will allow many first-time buyers to tap into the approximately $28 million in the program's remaining
funds.
While funded by the state, the money is distributed through the city and county housing offices that
operate the State Housing Initiatives Partnership (SHIP) program. There is no standardized program, and
each local agency may operate under different rules for distribution.
Indian River County SHIP Program
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