According to this mornings news reports, Senate negotiators may have reached a tentative deal on extending and expand the $8,000 first-time home buyer tax credit.

Here's the tax credit new deal Senate negotiators apparently reached:

  • The current $8,000 first time home buyer tax credit would be extended for contracts that are finalized by April 30, 2010 and close by June 30, 2010. This is supposed to help Realtors and mortgage lenders get through the supposed "slow" Winter selling season. In reality, while traffic is down, the housing sales numbers in the winter aren't all that different from summer and fall. But by allowing the tax credit to continue until June 30, you're also allowing those who buy next Spring to take advantage of the tax credit - and we'll have to read the fine print to know what the Senators mean by the "finalizing" date.
  • A new $6,500 tax credit will be available to some existing homeowners who lived in a home for a "consecutive" 5 years out of the past 8 years. This part of the tax credit seems to be designed to help out those who have had to move out of their long-time primary residence to take a job elsewhere and rented out the property because they couldn't sell it.
  • The income limits will be raised, so both tax credits will be available to those individuals earning up to $125,000, or up to $250,000 for married couples. The current tax credit limits first-time borrowers to an income of $75,000 for individuals and $150,000 for married couples, and phases out above those levels.

Stay Tuned!