Good news Ventura County: the first time homebuyers’ tax credit has been extended and expanded to April 30, 2010.  For many Ventura County homebuyers who were overbid or outbid by cash buyers, this extension of the first time homebuyers’ tax credit is a tremendous help.

The $8,000 tax credit, which is due to expire by November 30, 2009, has been beneficial to many in Ventura County in achieving their dream of homeownership.

“The homebuyers’ credit has helped pave the way for stabilization in the housing market and contributed to three consecutive months of rising home prices,” said Representative Jim McDermott, a Washington Democrat. “Its extension will continue to make homeownership more affordable and bring confidence to a housing market and economy that remain fragile.”

So here is how the HomeBuyers’ tax credit extension and expansion works:

• $8,000 tax credit to those buying a home for the first time in the past three years has been extended to April 30, 2010. In this case homebuyers must have signed a Residential Purchase Agreement before April 30, 2010 and close escrow by July 1st, 2010.

• Military families who have been deployed overseas for 90 days or more in 2008 or 2009 can enjoy the same benefits.  However, the time frame for these families has been extended to April 30, 2011 to close escrow.

• A tax credit in the amount of $6,500 to those homebuyers who have resided in their prior residence for a consecutive five years of the past eight years.

• Once you have used this tax credit, you would have to repay the credit if, within the next 3 years, you sell your home or no longer use your home as your primary residence.

• The income limit for both first time homebuyers and existing homeowners is $125,000 for individuals and $225,000 for couples.

• The new tax credit is only offered on homes priced at $800,000 or less.

The new tax credit bill is a part of a more complex bill that includes an extension of unemployment insurance benefits.  Those who are currently jobless will receive another extra 20 weeks of unemployment assistance.

With the Federal government extension and expansion of the tax credit for homebuyers, Ventura County’s real estate market is expected to see another boom in number of home sales.  Now only if there were enough homes on the market to satisfy all the homebuyers in Ventura County.

What do you think of the newly extended Homebuyers’ Tax Credit?