The federal homebuyer tax credit has been extended into 2010, and Congress expanded the credit to cover current homeowners, not just first-time buyers.

First-Timer $8,000 Credit Now Good Until April 30th 2010
In an effort to provide more support for a housing market struggling to absorb foreclosures Congress decided to extend the First Time Home-Buyer credit that was scheduled to expire on Nov 30th, 2009 . The $8,000 credit will remain in place for any purchases that have gone to contract by April 30th 2010.  Deals under contract by the April 30th 2010 deadline must close no later than June 30th, 2010.

Existing homeowners now eligible for $6,500 Homebuyer Credit
Congress also decided to offer a tax break for current homeowners who want to make a move.  The $6,500 credit also has an April 30th, 2010 expiration date (and you must close by June 30th.)  You must have owned-and lived in-your current home for at least five years.  If you then sell the new home within three years-or it is no longer your primary residence- you will be required to repay the credit.

Special note for members of the military: If you serve at least 90 days outside the U.S. you have until June 30, 2011 to use either credit.

Higher Income Limit to Claim Homebuyer Credit
Congress also voted to raise the income limits to qualify for the credit; this will mean a lot more of you may be able to take advantage of this big tax break. The income limits are for both new and existing homeowners.

The new income cutoffs to qualify for the tax credit:

• Individuals: 125,000. (Up from $75,000.)
• Married couples that  file a joint tax return: $225,000 (Up from $150,000.)

Home Price Limit Added
Your home purchase must be below $800,000 to qualify for either credit.

The bill also extends an $8,000 first-time home buyers' tax credit that was set to expire at the end of this month. The credit will apply to all house contracts entered into before April 30, 2010, and closed by June 30. It creates a new $6,500 credit for existing property owners looking to sell their home and buy another during the same period of time.