Your Estridge HomeSite

National Association of Realtors (NAR) has released Frequently Asked Questions to assist home buyers, home builders and real estate professionals in better understanding the Homebuyer Tax Credit Extension and Expansion.

Question #3:

I am a first time homebuyer but was not within the prior income limits at the time I entered into my contract to purchase on October 30, 2009. I will be covered, however, by the new income limits. If the new rules have been signed into law by the time I go to settlement, will I be eligible for a credit?

Answer:

Yes. The new income limitations go into effect as soon as the President has signed the bill. The income limit and other eligibility rules will look to your status as of the date of purchase, which is the settlement date. So if the new rules have been signed when you go to settlement, you should be eligible for the credit (or a portion of the credit if you're within the phaseout range).

Question #1 - New Home Cost versus Old Home Cost
Question #2 - Home Purchase Agreement is Signed, but Not Closed

View National Association of Realtors Comparison Chart