Boston, MA (PressExposure) November 26, 2009 -- The Massachusetts Association of Buyer Agents (MABA) is relieved that the Home Buyer Tax Credit legislation, which provides a maximum $8,000 tax credit to first time home buyers, has been signed and the deadline extended through April 30, 2010.
Now, first time home buyers who are in the process of purchasing a home don't have the November 30, 2009 deadline hanging over them. It will also enable even more first time buyers to take advantage of the program over the next several months.
Due to a provision in the American Recovery and Reinvestment Act of 2009, taxpayers who have not owned a primary residence in at least three years time are considered "first time home buyers" and are eligible for a tax credit of up to 10 percent of a home's purchase price (maximum $8,000).
The legislation has not only been extended, but expanded to include more buyers. A provision for homeowners who have lived in the same house for five consecutive years and are purchasing a new home meeting the remaining guidelines has also been added to the act. Those home purchasers may be entitled to a credit of up to $6,500.
In addition to the tax credits, the Federal Housing Administration (FHA) is allowing first time home buyers to use their tax credit towards a down payment or closing costs on the new purchase home.
"The Home Buyer credit program is ideal because the tax credit that the home buyer receives will not have to be repaid and may be used to purchase a home. Essentially, the program has stimulated the market to a point where home sales are at the highest level in over two years. It has helped many Americans reach their dream of owning a home," explained John Karcher, president of MABA. "We are absolutely thrilled that it has been extended to the Spring."
MABA is comprised of 55 members, and is currently accepting new members. MABA is dedicated to providing quality, fiduciary-level services to home buyers and specializes in working to save buyers time and money, as well as looking out for the buyer client's interests in the real estate transaction. MABA members never represent both the buyer and the seller in the same transaction and they never ask a buyer client to waive his/her right to full buyer representation. They are serious about due diligence and will inquire about non-disclosed property information.