FHA Mortgage Blog

The U.S. Senate & House have passed legislation to extend the Maryland $8,000 home buyer tax credit to May 1, 2010, for first-time buyers AND add a $6,500 tax credit for the existing homeowner if they’ve lived in their home for five of the past eight years. Maryland First-time homebuyers will continue at $8,000 – same definition as current law. Tax credit for current Maryland homeowners / “move-up” purchasers – is $6,500. Must have used home as principal residence for 5 of the last 8 years. Income limits increased and are the same for first-time buyer and the existing homeowner – $125,000 for single filers/$225,000 for joint. Limitation on eligible home prices has been increased to $800,000. Time frame: December 1, 2009 to April 30, 2010 – plus 60-day extension if binding contract is in place by April 30, 2010. The MAryland tax credit applies only on the purchase of an individual’s primary residence – no second homes or investment properties.