There is little doubt that the Federal Tax Credit for First Time Glendale Home Buyers (whew- that was a mouthful!) had a positive effect on our housing market.  I even saw a few offers that were contingent on a close of escrow by November 30- the deadline for the current program.

Late last week it became all but certain that lawmakers would not only push the deadline well into next year, but that they would also expand the program in a few key ways.

Deadline Extended

I the current prgram buyers must close escrow by Novemeber 30, 2009.  In the new program, escrow must be opened by April 30, 2010, but there is an additional 60 days allotted to close escrow.

Income limits for buyers will be higher

Income for single buyers can now go as high as $125,000 from the previous $75,000 and married couples can earn as much as $225,000, up from $150,000.  Purchase price can not exceed $800,000

Move Up Buyers Benefit, Too!

The most significant change is the inclusion of buyers who have owned a home for more than 5 years.  These buyers will qualify for $6,500 in tax credits when they buy a larger home.   It is nice to see that someone up there is thinking.  All the credits in the world won’t help if there are no houses for these first time home buyers to buy!!!

Now, my precious Chitlins, don’t go all giddy just yet.

This broudly supported, Obama Blessed, eminently sensible plan still has to make it out of the Senate Chamber.  Along the way, Gremlins will, no doubt, strip some of the more useful and practical provisions out of this bill.   But it is almost certain that the current program will extend well into next year.  Woo Hoo!