Real Estate Information

Answer: No. Thus, for example, individuals who move from a high cost area to a lower cost area who

meet all eligibility requirements will qualify for the $6500 credit.

Answer: Yes. The existing homeowner credit goes into effect for purchases after the date of enactment  (when the bill is signed). There is no reference to the date of contract for the new credit. The  provision looks solely to the date of purchase, which is generally the date of settlement.

Answer: Yes. The new income limitations go into effect as soon as the President has signed the bill. The income limit and other eligibility rules will look to your status as of the date of purchase, which is the settlement date. So if the new rules have been signed when you go to settlement, you should be eligible for the credit (or a portion of the credit if you're within the phaseout  range).

Answer: No. The $800,000 cap on the cost of the purchased home is firm at $800,000. Any amount  above $800,000 makes the home ineligible for any portion of the credit. The $800,000 is an  absolute ceiling.

Answer: Yes. Because you lived in the home for more than 5 consecutive years of the previous 8, you  will qualify for the $6500 credit. For example, Say John and his wife bought a home in 2000  and lived there until 2008 when he got a divorce. Whether John has been renting or bought in  the interim, he WOULD INDEED be eligible for the credit because he owned a home and  occupied it as his principal residence for 5 consecutive years out of the last 8 years. The  keyword here is "consecutive." As long as he lived in that house for 5 years straight what he   did since 3 years doesn't impact eligibility.

Answer: You do not have to close before December 1. Once the legislation has been signed, it will be as if the Nov 30 date had never existed. Therefore, so long as the contract settles before April 30 (or July 1, worst case), the purchaser will be eligible for the credit.