FEDERAL GOVERNMENT
HOME BUYER TAX CREDIT

During the first week of November, the Senate and House of Representative gave overwhelming approval to and the President signed legislation extending the $8,000 Tax Credit for first time home buyers and expanding the program to include a credit of up to $6,500 for eligible existing homeowners wishing to buy another home.   The $8,000 home buyer tax credit for first time buyers, due to expire November 30, 2009, will be extended through April 30, 2010 and buyers will have an additional two months, until the end of June, 2010, to close.  First time buyers who are currently

in the process of making a purchase will no longer need to worry about qualifying for the $8,000
credit if they close after the November 30 deadline. The new legislation also increases the income
limit for couples to a combined income of up to $225,000 (from $150,000 in existing law) or for
singles of up to $125,000 (from $75,000 in existing law).

For the first time, the new legislation makes buyers who already own a home eligible for a credit. A
$6,500 maximum credit will be available to existing homeowners who have lived in their current
residence for five of the prior eight years. The legislation limits eligibility for the existing homeowner
credit to homes worth $800,000 or less.

The legislation takes effect December 1, 2009 and is not retroactive. Both credits are available only
for primary residences, not second homes or investment properties. It also includes provisions
added to address complaints of fraud and abuse alleged in the current program.

The above Information is based on an internet article from RIS Media on November 6, 2009

THE BELOW LINKS PROVIDE MORE INFORMATION FOR YOU:

Click here for a table comparing the new legislation to the old legislation

Click here for some Frequently Asked Questions about the New Tax Credit Legislation

Click here for a link providing detailed information regarding the Expanded Home Buyer Tax Credit

Bottom Line:  FOR ANY FURTHER INFORMATION OR TO DETERMINE YOUR
ELIGIBILITY FOR THE TAX CREDIT CONTACT YOUR TAX ADVISOR AND/OR A
MORTGAGE PROFESSIONAL.  Mark Pruet with MortgageSouth 205-445-1435 will be happy
to discuss your specific situation with you and to help you secure a mortgage loan.