First-time home buyers have been eligible for tax credits of up to $8,000 since last January as part of this year’s economic stimulus package.  The newly backed program will expand the credit to include existing homeowners.

Under the revised program, those who have owned a home for at least five years will be able to apply for tax credits of up to $6,500 when they purchase their next home.  To qualify, buyers will have to sign a purchase agreement by April 30, 2010 and close by June 30.

The maximum purchase price on a home will be $800,000 with vacation homes not eligible. Income limitations are $125,000 for single tax payers and $225,000 for joint filers.

IMPORTANT NOTICE: You must close on your purchase on or before November 31, 2009. Foreclosed homes are beginning to dry up and Short Sales are becoming the best-valued purchase. I might even go so far as to predict that we will see a spike in privately owned homes (yes they still do exist) and short sales. Here’s why:

• Short Sales are becoming more common with today’s market and banks are approving these types of sales more often and more quickly.

• Short sale homes are cared for, in much better condition and priced very well. Would you rather buy a foreclosed home that requires $20,000 – $30,000 in repairs for a $100,000 or buy a short sale home that needs no repairs for possibly $ 100,000 as well? It just takes some time to get acceptance from all the lien holders.

My advice is get in contact with a Realtor® that has experience in all aspects of today’s Real Estate market and is willing to discuss your options for buying you first home. My opinion is this, buying a home with very little or no repairs needed are the best deal going. But also remember Short Sales take time but in the end it will be worth it. Now get out there, start searching and Good Luck!