Uncle Sam Giveth. Uncle Sam Taketh

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Potential good news for the Hoboken market!

An extension of the $8,000 first-time home buyer tax credit appears all but certain after the Obama administration called on Congress to give house hunters more time to claim the popular tax perk. The move comes shortly after Senate lawmakers stuck an agreement to not only push back the measure’s looming deadline but expand it to allow current homeowners and more affluent buyers to claim the credit.

The deadline for first-time home buyers to claim the $8,000 credit would be pushed back to April 30, 2010. But the term “deadline” doesn’t mean the same thing as it does in the current credit. The Senate agreement stipulates that buyers must have a sales contract on a house by April 30 to be eligible, but it gives them an additional 60 days to close the purchase…the effective deadline of the credit under this agreement is actually the end of June.
The agreement would allow current homeowners to claim up to $6,500 as long as the property they are vacating has been their primary residence for at least five years.
Senators moved to increase its annual income limits from $75,000 to $125,000 for single buyers and from $150,000 to $225,000 for married couples. These limits apply to both first-time and move-up buyers, although neither can purchase a home for more than $800,000 and still get the credit.

Only one picture today. It’s so good (meaning bad) that it is worth showing twice.

Comments

  1. The real issue here is that there is no word on expanding the duration of the temporary high-cost conforming loan limits. These are critical to supporting overpriced property on Hoboken.

    The reflation trade gave us nice Q3 #s, suppressing interest rates will do that. However what happens when rates on the upper end of the borrowing spectrum go up, as they are slated to do?

    When anyone looking at a 1M+ dollar home in Hoboken starts facing a roll-back to $625K as the max limit to receive a beneficial interest rate (currently 5.25-5.375%), you're adding at least .5%….Unless you're willing to put down 35%+ on your property.

    That's the real "taketh away" here… until we hear otherwise on whether the max high-cost confoming loan limit will be extended.

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