Richard's Real Estate Thoughts: First Time Home Buyer tax credit moving forward - no longer just first time home buyers

The administration support, and the approaching deadline, has given much momentum to the extension and the expansion of the First Time Home Buyer tax credit.

And the Senate Finance Committee has pushed forward a proposal to extend a credit to existing home owners. Included in the Senate bill is also extended unemployment benefits.

In fact it would no longer be a first time home buyer tax credit. Just a home buyer tax credit.

Provisions of the tax credit agreement

• Deadline to be extended to April 30
• Existing home owners, who have owned prior residence at least 5 years, may receive up to $6,000
• Income limits increased to $125,000 for singles and $225,000 for couples
• Homes over $800,000 are not eligible

There would be a significant change to the new deadline - rather than closing by April 30, the contract must be accepted by April 30. (No back dating, right.)

Some senators are insisting that this is the "last extension."

Estimates on the boost from the tax credit, as far as actual new home sales, vary - from no impact to significant impact.

One thing known - the cost. Another $10,000,000,000 or so.

I love the logic about how to pay for the tax credit. From the HILL.com , "Senate Finance Chairman Max Baucus (D-Mont.) said that the cost will be offset by delaying a tax break for U.S.-based international corporations that was scheduled to start in 2010."

This tax credit will be funded by delaying another tax credit - not by cancelling the other tax credit but by delaying.