Homebuyer Tax Credit Extended and Increased

The government recently voted overwhelmingly to extend and increase the first time homebuyer tax credit.  The change now allows homeowners who have live in their house for the last five years to purchase a new home and qualify for the credit.  While some have voiced concern over this plan, the effects (trickle down) can be immense due to all of the areas assisted.  For example, when a new home is purchased a realtor makes a commission along with a mortgage company who will employ the lead mortgage lender and assistants.  Real Estate Appraisers are compensated to review the house along with inspectors and others involved.  In many cases a construction crew is required to make repairs to homes along with the fix up required on current homes to sell them.  In all, many parts and people are impacted by home sales. 

Smart Money Magazine had a great article describing all the in’s and out’s of the tax credit so please refer to the link below to view the article.

http://www.smartmoney.com/personal-finance/taxes/10-Things-You-Should-Know-About-The-New-Homebuyer-Credit/?cid=1228