I just wanted to express my gratitude for all that you did on behalf of my family. When an employment opportunity arose we had little time to coordinate our relocation to the Houston area from the East Coast. We were so fortunate to come across your website and we are so pleased that we sent an email for more information.
When Stacy contacted us within 24 hours of receiving our email, it was apparent that he had already done a great deal of research into the neighborhoods and schools within a reasonable distance of my new office.

— A.D. of Spring, Texas

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Home Buyer Tax Credit Changes

The government gave the real estate market a boost with the passing of the Home Buyer Tax Credit, which was to end on November 30th of this year. I am happy to tell you that on Friday President Obama signed the Worker, Homeowner, and Business Assistance Act of 2009 into law. Not only did we get an extension of the Home Buyer Tax Credit, the current legislation has been expanded to include a tax credit for current homeowners looking to purchase a new home.

Here in the Katy area, and all over the Houston market, we have weathered the financial crisis well. The tax credit certainly helped our real estate market maintain impressive numbers compared to the rest of the nation. The expansion and modification of the Home Buyer Tax Credit is expected to give another boost to the real estate market as a whole, which of course is great news for our little neck of the woods.

Many buyers who were on the fence or unable to qualify in time to receive the current tax credit benefit will now be able to move forward with their home buying plans, and current homeowners who may have been thinking of moving will now have an added benefit to consider.

While some provisions remain the same, there are several changes to the existing credit for first time home buyers. The following table provides a good break-down of the current legislation for both first time buyers and buyers who currently own a home.

Feature	Jan 1 - November 30, 2009 Rules as enacted February 2009	Dec 1, 2009 - April 30, 2010 Rules as enacted November 2009
First Time Buyer - Amount of Credit	$8000 ($4000 married filing separate)	$8000 ($4000 married filing separate)
First Time Buyer - Definition for Eligibility	May not have had an interest in a principal residence for 3 years prior to purchase	Same
Current Homeowner - Amount of Credit	No Provision	$6500 ($3250 married filing separate)
Effective Date - Current Owner	No Provision	Date of Enactment
Current Homeowner - Definition for Eligibility	No Provision	Must have used the home sold or being sold as a principal residence consecutively for 5 of the previous 8 years
Termination of Credit	Purchases after November 30, 2009. (Becomes April 30, 2010 on Date of Enactment)	Purchases after April 30, 2010
Binding Contract Rule	None	So long as a written binding contract to purchase is in effect on April 30, 2010, the purchaser will have until July 1, 2010 to close.
Income Limits (Note: Increased income limits are effective as of date of enactment of bill)	$75,000 - single $150,000 - married additional $20,000 phase out	$125,000 - single $225,000 - married additional $20,000 phase out
Limitation of Cost of Purchased Home	None	$800,000 Effective Date of Enactment
Purchase by a Dependent	No Provision	Ineligible Effective Date of Contract
Anti-fraud Rule	None	Purchaser must attach documentation of purchase to tax return.

With the extension and expansion of the home buyer credit, far more people will have the opportunity to realize the dream of home ownership. If you are thinking about purchasing and/or selling a home, our team of real estate professionals would be happy to sit with you to discuss how this new law may affect you. Please email me at stacy@jonesteamonline.com or call me at 281-398-2015 to set up your free no obligation appointment.

Table Source: National Association of REALTORS® Government Affairs Division

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All information in this site is deemed reliable but is not guaranteed and is subject to change.

The information herein is furnished by the owner to the best of his knowledge, but is subject to verification by the purchaser, and agent assumes no responsibility for correctness thereof. The offering is made subject to errors, omissions, change of price, prior sale or withdrawal without notice. In accordance with the law, this property is offered without regard to race, creed, national origin, disability or gender.