Now is a great time to buy a home in Northwest Indiana!

The Worker, Homeownership, and Business Assistance Act of 2009 has extended the tax credit of up to $8,000 for qualified first-time home buyers purchasing a principal residence to April 30th, 2010. The new legislation also increases the income limit for couples with income up to $225,000 and individuals up to $125,000.

The act has also authorized a tax credit of up to $6,500 for qualified repeat home buyers. An eligible repeat home buyer must have owned and lived in their previous home for five consecutive years out of the last eight years. Single taxpayers with incomes up to $125,000 and married couples with incomes up to $225,000 qualify for the full tax credit. It is equal to 10 percent of the home’s purchase price up to a maximum of $6,500.

For first time and repeat home buyers, the tax credit applies only to primary residence homes priced at $800,000 or less. It is also available for homes purchased after November 6, 2009 and on or before April 30, 2010. However, in cases where a binding sales contract is signed by April 30, 2010, the home purchase qualifies provided it is completed by June 30, 2010.

For more information, take a look at a side by side comparison chart of the new and old tax credit.

Need more clarification? Check out this special edition of This Month in Real Estate.

Please let the Jana Caudill Team help you with all your Northwest Indiana real estate needs.

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