I am closing on a house and I should gross 110k for 2009. I have lived in two separate homes deeded to me and my ex (I believe the mortgage on the second home was in his name only) for the consecutive years of 2000-2005. Do I qualify for any of the tax credit?

Congratulations on the new home first of all, that is fantastic news.

The tax credit has been both extended and expanded. According to the new tax credit limits, single household income limits have been raised from $75,000 to $125,000 and joint filers from $150,000 to $225,000, so your income would not be an issue. Additionally, homes with purchase prices up to $800,000 are eligible for this tax credit, so this would also encompass your new home.

My only concern would be the residency issue of your previous homes. You mention living in two residences for the years 2000 to 2005, one of which you believe is in your ex’s name. In order for you to qualify for the tax credit of $6,500 now being offered to homeowners who are not first-time purchasers, you must have lived in the same principal residence consecutively for 5 of the previous 8 years. If that is the case, you can count on Uncle Sam for a $6,500 credit.

Hope this is helpful and best wishes in your new home Marie!

Christina Rordam is a REALTOR® for Exit Realty Central in Orlando and Baldwin Park, FL.

Are you interested in having a qualified REALTOR® answer your questions? Click through to Ask a REALTOR® now.

Are you a REALTOR® who would like who like to answer consumer questions? Click through to become an Ask a REALTOR® participant.

Is it possible to add my down payment in my mortgage payments if I don’t have that much for a down payment? In other words, can I purchase a house with a $0 deposit and how do I do that?

–Janice

Congratulations on taking the first step towards owning a new home! I’m assuming you are a first-time home owner, and not to worry, there is some good news developing for you. The Senate is working on finalizing an extension of this tax credit allowing you ample time to find the home of your dreams and come to an agreement with the seller.

Regarding purchasing your new home with $0 down ,yes, this is also possible! There are several loan programs available, as well as regional assistance programs that offer you the incredible opportunity of home ownership with nothing down. Which program works for you will depend upon your qualifications, so I would recommend speaking with a qualified mortgage professional as well as an experienced REALTOR®. Best wishes in your home search.

Christina Rordam is a REALTOR® for Exit Realty Central in Orlando and Baldwin Park, FL.

Are you interested in having a qualified REALTOR® answer your questions? Click through to Ask a REALTOR® now.

Are you a REALTOR® who would like who like to answer consumer questions? Click through to become an Ask a REALTOR® participant.

An extension of the $8,000 tax credit has gained approval from the Senate but will not be  officially voted on until November 2, after which the House of Representatives will have its vote.  The hope is that home sales will continue their current momentum into next year with the aid of the tax credit.

David Welch blogs about the tax credit’s proposed expansion.

“Buyer beware. The tax credit has not, I repeat has not, been extended yet. It is looking more likely with key Senators agreeing to extend the current credit through the end of April and even as far as July 1, 2010. There is also an agreement to expand the qualifications for the credit to higher income buyers and repeat buyers who have lived in their home for five consecutive years out of the last eight.

Right now this agreement has not even been voted on in the Senate. This is just a tentative agreement to go forward with legislation. There are still a number of obstacles in the way including the House of Representatives, where concern over fraud from the existing program may hold things up.”

The success of our economy rests largely on the growth and recovery of the housing market. And, new jobs must be created to help homeowners from losing their homes. With an extension of the tax credit, home buyers can help spur recovery in the housing sector while also creating new jobs that support the housing market.

Click through to read David Welch’s full post.

Sign up for a free Featured Blog on Realtor.com today.

The GDP, or gross domestic product, has grown for the first time since the middle of 2008. A key factor when measuring a nation’s standard of living,  growth in the GDP affirms the improvements many REALTORS® are seeing in their local market. However, even with buyers finally buying, many wonder if the improvements are only temporary.

Christina Rordam blogs about the economic surplus:

“The end of the recession?? While I don’t want to speak too soon it appears we are reaching the end of some of the major economic troubles the U.S. has been facing. For the first time in two years, the economy grew 3.5 % in the third quarter according the Associated Press and Florida Association of Realtors.

Many believe this surplus is due to the government sponsored programs such as the $8,000 first-time home buyers tax credit and the government’s Cash for Clunkers programs. As always, the health of the housing sector is key to the economic turnaround we are now experiencing.”

Economists warn that the growth is only the result of consumer spending, spurred by programs like the first-time buyer tax credit and the Cash for Clunkers program, as Rordam points out. Realtors too are conscious of the effect the tax credit has had on the economy and the housing market. Many suspect that if incentives like the credit are not extended, buyers may lose confidence and growth could come to a halt.

Clic through to read Christina Rordam’s full post.

Sign up for a free Featured Blog on Realtor.com today.