Good News For Home Buyers!

Originally, the $8,000 tax credit was set to expire November 30, 2009, but the first-time home buyer tax credit may get new life.

Key lawmakers in the Senate have tentatively agreed to extend the existing $8,000 tax credit for first-time home buyers and also offer a new $6,500 credit for existing homeowners who have lived in their current residence for a consecutive five-year period in the past eight years.

The new proposal requires home buyers to be under contract by April 30, 2010, and close before July 1. House Democrats have expressed concern about the cost of the tax credit for the government, and allegations of abuse have resulted in an IRS probe of the program.

The refundable tax credit is an easy way for homebuyers to score additional money when they file their 2009 income taxes.

If you are a first-time home buyer in the market for a home, the $8,000 tax credit extension is great news! This tax credit extension will help give you an extra bit of money to replenish your savings after your down payment.