As we promised, as soon as any extension of the current first time homebuyers tax credit legislation  became clear, we’d give you and update.  Well, enough has transpired recently,for ust give you such an update.

Last week, both the House and the Senate passed (and, almost certainly, sometime this week, President O’Bama will sign legislation) that: extends and expands the First Time Homebuyer Tax Credit.  Under the extension/expansion, first fime homebuyers must sign a contract to purchase a home by April 30, 2010, and close on that home by June  2010.  (One question left unclear – if a hombuyer signs a contract to purchase by April 30^th, but for some reason alters and resigns a contract after that date (for example – if an inspection causes a lowering of the sales price), will such still qualify?)

Along with the date extension, the new legislation also increases the income limiations to qualify for the tax credit: specifically, from a maximm $75,000 to $125,00 0 for individual purchasers and $150,000 to $225,000 for couples purchasing together.

Additionally, the new legislation adds a credit for current homeowners.  Specifically, if you are a homeowner who has lived in your primary reisidence for at least 5 years, and you purchase a new home within the above time frame, you may qualify for a $6,500 tax credit.  (At this writing, the anwers two pertinent questions are unclear: namely, do you have to sell your current home to qualify for the $6,500 credit, or can you keep that home as an investment property, and, if 're currently a primary homeowner, and you signed a contract to buy a new home prior to this new legislation going into effect, do you qualify for the credit?)

One other question many purspective homebuyers have  asked – does the new legislation cover vacation homes.   Here, the answer’s clear:  No.   The legislation ONLY applies to primary residences.