The $8,000 First Time Homebuyer Tax Credit and $6,500 repeat homebuyer tax credit has been extended for Military, Foreign Service and Intelligence Community personnel through April 30, 2011, as long as you go under contract by that date and close by no later than June 30, 2011.
This is great news, and it’s proof that Congress understands the pressing demands and situation faced by members of the military, the foreign service and the intelligence community. In addition to this extension, Congress has lifted some of the other key rules pertaining to these tax credits.
Paying Back Your Homebuyer Tax Credit
Normally, you have to repay the tax credit if you sell your home or your home ceases to be your primary residence within three years of the initial purchase. However, qualified service members required to move for extended duty purposes will not have to repay the tax credit.
Definition of “Qualified Service Member” and “Official Extended Duty”
It’s important to remember two key definitions where this first-time homebuyer tax credit extension is concerned. “Qualified service member” refers to a member of the uniformed services of the U.S military, a member of the Foreign Service of the U.S., or an employee of the intelligence community.
The term “Official extended duty” refers to any period of extended duty outside of the United States for at least 90 days during the period beginning after December 31, 2008 and ending before May 1, 2010.
I hope you found this post useful! As always, if you or anyone you know is in need of a local Florida mortgage loan originator, I’m your guy. Call me at 888-859-7418 or apply online for your Florida mortgage. We’ll keep you posted and let you know when it’s time to pull the trigger!
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Kevin,
Great news that I actually hadn’t heard yet. Thanks for the share!
Julia Fishel
Hey Julia! Thanks for the comment. Yeah, it’s only fair to give these folks an extension on the tax credit. I’m happy to get the word out. We do a TON of VA loans, so I get to be the bearer of this good news to a lot of deserving borrowers!