Click this link government_affairs_tax_credit_ext_chart_1104091for the the detailed chart that will compare the old credit to the new, but here’s the skinny:

If you purchase a home between December 1, 2009 and April 30, 2010 and have not owned a home in the last 3 years, you will qualify for $8000 in tax credits.
NEW – If you purchase a home between December 1, 2009 and April 30, 2010 and already own a home, you will qualify for $6500 in tax credits.

Also NEW – Income levels have been raised to $125,000. That will come as a great relief to middle America. Up until now, the homebuyer credit pushed sales in the lowest price ranges – $250,000 and under, appealing to first time homebuyers. That, in turn gave a small push to those who wanted to move up into the 2nd price range 0 $250,000 0 $500,000. The problem was that most who wished to move up were taking a big loss on the sales end because of the drop in median home prices.

Now, those who wish to move up may get a $6500.00 credit to help offset that loss, or at least cover the cost of much demanded buyer closing cost assistance. That will help current home sellers compete with new construction incentives. Hopefully this will help clear more resale inventory as well as boost the 3rd price range, $500,000 and over.

Will it come at a cost? You bet! Let’s not pretend that these tax incentives won’t come out of our pockets in the long run. But at least if we can all contribute to shoring up the housing market, we should all benefit in the long run by a more stable overall economy.