Tax Credit For Home Buyers Expanded
Mt. Laurel, NJ -- For new homebuyers, the holidays have certainly come early this year. The U.S. government has extended the deadline for first-time homebuyers to qualify for up to $8,000 in tax credits and added the opportunity for repeat buyers to also collect tax credits as part of the nation’s economic stimulus package.
Buyers who have not owned a primary residence for the last 3 years have the opportunity to receive up to $8,000 through this program. Originally scheduled to end in November 2009, buyers now have until April 30, 2010 to buy a new home and must close on that home by June 30, 2010.
A new $6,500 tax credit is one unique element introduced as part of the expansion. To be eligible for this credit, the homebuyer does not necessarily have to be a first-time buyer. Instead, they must have owned and lived in a primary residence for five of the last eight years. This credit would is perfect for buyers looking to downsize, make a lateral move or “move-up.”
Another new element of the extension is an increase in the buyer’s annual income level. Buyers may now earn up $125,000 for individuals and $225,000 for couples to qualify for either tax credit.
“The new elements of this program make buying a new home within the next couple of months more affordable and easier for those looking to take advantage of the industry’s current ‘buyer-friendly’ marketplace,” said Stephen Hovnanian, principal for Mt. Laurel-based homebuilder J.S. Hovnanian & Sons.
Hovnanian also noted that the extension is also welcomed news for sellers – especially those thwarted by the demands and pressures of such a “buyer-friendly” marketplace.
“By expanding the tax credit to include repeat homebuyers, the government has added millions of qualified home buyers to the real estate marketplace,” added Hovnanian. “Our task is to help buyers navigate and get the most out of the tax credit – ultimately stimulating sales and our economy as a whole.”
J.S. Hovnanian & Sons is helping local buyers take advantage of this limited time tax credit offer by extending their already successful Gold Key Plan™ and introducing a Tax Credit Guarantee. The Gold Key Plan™ is a valuable option for customers eager to sell their current home, and includes a free appraisal and a planning session with J.S. Hovnanian & Sons’ interior decorators who are armed with tips on how to increase a home’s value and salability. For those buyers worried that their new home may not be ready on time to take advantage of this program, the Tax Credit Program not only guarantees that the home will be completely ready by June 30, 2010, but also adds the financial incentive that J.S. Hovnanian & Sons will adjust the price of the home by the amount of the buyer’s tax credit if the home is not ready by the deadline date.
As the deadlines to take advantage of the new tax incentives approach, Hovnanian cautions buyers, especially those planning to build a custom home, not to wait until the last minute to take advantage of the new tax credit incentives.
“The time to act is now,” warns Hovnanian. “Since it can take 4-6 months to build a new home, a non-contingent contract must be signed no later then the beginning of February depending on the home in order to meet the June 30th deadline. Many people do not realize how quickly that date is approaching, and if they have a home to sell first, they really need to start considering the Gold Key Plan™ today.”
For more information about the tax credit extension and to learn more about how J.S. Hovnanian & Sons is working to help local area buyers navigate the market, please visit www.HOVhomes.com/8000 or call (856) 235-8444 today.
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