The proposal to extend the first time home buyers tax credit is getting very close to being finished. The latest update is that the extension will offer tax credit to home purchases under contract by April 30th, 2010 while allowing another 60 days to close on the sale. The biggest change we may see in the newest proposal is that the income levels for the tax credit have increased. The new proposal is individuals up to $125,000 and couples up to $250,000; this is an increase from $75,000 for individuals and $150,000 for couples.
For “move-up” buyers or individuals who have lived in their current home for five or more years, the tax credit would have the maximum of $6500. This is just a proposal and nothing has been confirmed yet. Overall, it looks as if the tax credit extension may be a reality and many first time home buyers may get their wishes of having the tax credit moved forward.