Senate likely to extend homebuyers' tax credit







Washington (CNN) -- Senate leaders have reached a tentative deal to extend the first-time homebuyers' tax credit that was originally passed earlier this year as part of the stimulus bill, Republican and Democratic sources told CNN on Wednesday.
The agreement would extend and expand the credit to include current homeowners who want to move, according to the sources.

The original credit in the stimulus bill is set to expire at the end of November and offers a tax credit of $8,000 to first-time homebuyers.

Senate sources told CNN they have tentatively agreed to extend that $8,000 credit for first-time buyers until the end of April. In addition, they are adding a $6,500 credit for some current homeowners who buy a new residence by then.
To qualify, current homeowners must have lived in their primary residence for five continuous years.
Senators have not agreed on how the tentative deal would come up for a vote, but sources from both parties said they are considering adding the housing credit to a bill that would extend unemployment benefits.

House Speaker Nancy Pelosi has indicated she also is interested in extending the homeowner credit, but House leaders have yet to endorse any one bill.

CNN's Ted Barrett, Dana Bash and Lisa Desjardins contributed to this story.

Drama Free Home Buying Tips

Drama-Free Home BuyingBuying a home is a life-changing event, so it's easy to get caught up in all the drama. Minimize the stress of home buying with these 10 action steps, strategies & insider secrets, from real estate expert Tara-Nicholle Nelson.

10 Review your closing papers.
9 Consider the contingencies.
8 Master the house hunt.
7 Avoid buying a lemon.
6 Make the perfect offer.
5 Get the right Realtor.
4 Avoid surprises during escrow.
3 Manage your mindset.
2 Know what to expect.
1 Get the timing right.

The home inspection reveals some nasty surprises.
Unexpected termite damage is bad, relative to your threshold for doing repairs, but you can still save the deal.

Your home loan falls through during escrow.
This can happen, especially in today's market with lending guidelines constantly changing. Take a breath, focus and act quickly.

You get outbid for the house you want.
Well-maintained, competitively priced homes in desirable neighborhoods will spark bidding wars. Be prepared.


"I want to buy a foreclosure."
A distressed home doesn't always mean "bargain." The property may need work, and the buying process is more complex.

"My partner and I can't agree on buying a fixer-upper."
DIY homes involve more time and money than most people think. And it may not be worth the price.

"I'm overwhelmed by the commitment of homeownership."
Monthly mortgage. Repairs. Taxes. Insurance. It can be a lot for a first-time homebuyer to handle.

"I lost my job while in escrow."
Losing a source of income affects whether you still qualify for the mortgage. Your contingencies should buy you some review time.

http://www.frontdoor.com/buy/Drama-Free-Real-Estate-Guide-Tips-and-Advice-for-Savvy-Home-Buying-Selling-and-Financing-Without-the-Stress/55032