Now buyers have a second chance: the tax credit has been extended through April 30, 2010.    The credit is now 10% of the home price, up to $8,000 for first-time buyers and up to $6,500 for repeat buyers.  In short, all buyers must have a binding contract on a house in place on or before April 30.  The sale must close on or before June 30, 2010.  

Income limits have risen as well. According to the IRS, the home-buyer tax credit now phases out for individuals with modified adjusted gross incomes between $125,000 and $145,000, and between $225,000 and $245,000 for people filing joint returns.

  “We’re excited to see what the extension of the tax credit will do for the Indianapolis housing market. In 2009, Indianapolis has seen positive results from the tax credit, stimulating home sales and providing a benefit to first-time homebuyers who might have been waiting for a “better time”, but now is the time. We also want those current homeowners who have been in their homes for five of the last eight years, to know that they too can benefit from the tax and that they can receive up to $6,500 for purchasing a home by April 30, 2009,” states Dan Breault, Regional Director for one of the state’s largest real estate organizations.  

Submitted by:  David Brenton

Source:  Statistics compiled by RE/MAX of Indiana