You need to act quickly – The present tax credit program for move-up and first time buyers expires this spring. Sales contracts must be signed by April 30. With low rates and lower home prices, this is the time to act. Even the Federal Reserve Board has stated that rates are likely to rise this spring as they begin to unwind their support of the mortgage markets.

$8,000 First-time Home Buyer Tax Credit at a Glance:

• The $8,000 tax credit program is for first-time home buyers only. For the tax credit program, the IRS defines a first-time home buyer as someone who has not owned a principal residence during the three-year period prior to the purchase.
• It does not have to be repaid.
• The credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000.
• Applies only to homes priced at $800,000 or less.
• The program now applies to sales occurring on or after January 1, 2009 and on or before April 30, 2010. However, in cases where a binding sales contract is signed by April 30, 2010, a home purchase completed by June 30, 2010 will qualify.
• For homes purchased on or after January 1, 2009 and on or before November 6, 2009, the income limits are $75,000 for single taxpayers and $150,000 for married couples filing jointly.
• For homes purchased after November 6, 2009 and on or before April 30, 2010, single taxpayers with incomes up to $125,000 and married couples with incomes up to $225,000 qualify for the full tax credit.

For more detailed information on the first-time homebuyer tax credit program: http://www.federalhousingtaxcredit.com/faq1.php

The $6,500 Move-Up / Repeat Home Buyer Tax Credit at a Glance:

• To be eligible to claim the tax credit, buyers must have owned and lived in their previous home for five consecutive years out of the last eight years.
• It does not have to be repaid.
• The credit is equal to 10 percent of the home’s purchase price up to a maximum of $6,500.
• Applies only to homes priced at $800,000 or less.
• The program is available for homes purchased after November 6, 2009 and on or before April 30, 2010. However, in cases where a binding sales contract is signed by April 30, 2010, the home purchase qualifies provided it is completed by June 30, 2010.
• Single taxpayers with incomes up to $125,000 and married couples with incomes up to $225,000 qualify for the full tax credit.

For more detailed information on the move-up buyer tax credit program: http://www.federalhousingtaxcredit.com/faq2.php