Recently a client of mine who purchased a home in the Lynchburg MLS area, in August of 2009 asked me about the new $6.500 federal tax credit for the “move-up” buyer.  This is available immediately upon enactment November 6, 2009. She wanted to know if she was eligible.  Here are the guidelines to qualify:

1. You must have owned and used your current home as your principal residence for 5 consecutive years out of the last 8.
2. Your adjusted household annual income cannot exceed $125,000 if you file your taxes as single or $225,000 if you are married and filing  jointly.
3. You have to sign a contract to purchase a replacement residence before April 30, 2010 and close on it by June 30, 2010.

This is potentially huge for many people who never thought they could qualify for a tax credit since they have owned their home for some time.  In fact many of my clients nose were out of joint because they felt they were hard working folks and never got a tax credit for purchasing a home.

Just because the $6,500 tax credit feature has been “labeled the move-up credit”, it  does not mean that you must purchase a bigger or costlier home.  You could always downsize & still take advantage of the credit.

If you have more questions about this topic or another real estate topic in the Lynchburg MLS area I’d be happy to talk with you.