First-time home buyers, who are defined by the law as buyers who have not owned a principal residence during the three-year period prior to the purchase, get a tax credit for 10{eb914d8c00d6b744d02a9a8064b0bfd5c559be7136358887c29ad495da2b8d17} of their purchase price, capped at a maximum of $8,000.
To qualify for the new tax credits, buyers must sign a purchase agreement by April 30, 2010, and close escrow on the deal by June 30, 2010. So the earlier deadline of closing before December 1, 2009 has been extended.
Existing home owners who have been residing in their principal residence for five consecutive years out of the last eight and are purchasing a home to be their principal residence, may also be eligible for up to a $6,500 tax credit.
To qualify for the new tax credits, buyers must sign a purchase agreement by April 30, 2010, and close escrow on the deal by June 30, 2010.
The information is not clear as to whether the homebuyer can convert the existing home to a second home, rental property or investment home….so we will have to wait for the fine print..