Home Buyer Tax Credit Extended and Expanded by The Senate

Beside the current low mortgage rates, you now have another incentive to buy a home. The Senate has voted to expand and extend the first time home-buyer tax credit that was due to expire at the end November 2009. The House is expected to vote and pass it later today.

For first time home-buyers which includes anyone who hasn't owned a home in the past three years, the $8,000 tax credit has been extended to April 30, 2010. You have to sign a sales contract by April 30 and close on the home by June 30, 2010.

Looking for today’s mortgage rates? The best mortgage interest rates can be found in your state by using our mortgage rate tables: Best Mortgage Rates

The credit has been expanded to include a $6,500 tax credit for home-buyers who have owned their home for at least five years. The tax credit is only for a home purchase that will be your primary home and costs $800,000 or less.

The credit is also phased out for individuals with annual incomes above $125,000 and for joint filers with incomes above $225,000. If you're in the military serving outside the United States for at least 90 days, the tax credit is extended for another year.