FREQUENTLY ASKED QUESTIONS ABOUT THE NEW TAX CREDIT PROGRAM

For existing homeowners must the new house be more expensive than the current house?

No.  As long as all of the other requirements for eligibility are met you will be eligible for the credit (up to $6,500)

I am an existing home owner.  On October 25, 2009 I signed a contract to purchase a home.  I have lived in my current home for more than 5 consecutive years.  I also qualify on the income limits. I will settle on my new home on November 20, 2009.  Will I qualify for the tax credit?

Yes.  The new rules go into effect on November 6, 2009.

I am a first time buyer.  I was not eligible under the income limits of the old program when I entered into a contract on my new home on October 20, 2009.  I would be eligible under the new limits for income.  Will I be eligible for the tax credit when I go to settlement on my new home in December 2009?

Yes.  The rules will be measured on the day of purchase which is the settlement date.

I am an eligible existing homeowner.  I have a fair amount of equity in my current home.  I have found a new home with a non-negotiable price of $825,000.  Will I be eligible for any of the $6,500 tax credit?

No.  The $800,000 limit on price is firm.  Any purchase of a home over that amount is not eligible.

I owned my home for 10 years but sold it two years ago and have been renting ever since.  If I purchase a new qualifiying home and my income is under the limit will I be able to recieve any of the tax credit?

Yes.  You lived in your former home for at 5 of the past 8 years.  That will qualify you as long as the other requirments are met.

I am an eligible first time buyer.  I entered into a contract to purchase a home on November 1, 2009.  Do I still have to go to closing by November 30, 2009?

No.  The extension has been passed into law and the new deadlines are in effect at this time.

I recently settled on a home in October.  I was not eigible for the tax credit based on my income being higher than the limits in effect at that time.  With the new law I would be eligible based on the new income limits.  Can I go back and claim the credit at this time?

No.  The requirements are measured as of the day of settlement which was in October.  At that time your income was measured.  If you were over the stated limits at that time you are not eligible for the tax credit.