If you’re an existing homeowner and even remotely thinking about upgrading or downsizing, now is the time for YOU to buy, as well. Because of the success the temporary financial incentive had on the housing market and overall economy, Congress expanded the home-buyer tax credit to include repeat buyers. So, if you’re a current homeowner who has lived in your home for 5 consecutive years out of the last 8, you may now be eligible to receive a $6,500 tax credit.

“Not only can you receive a large sum of money from the government, you’ll also likely purchase your next home for less money and at a lower interest rate than you could have in years past or years to come, according to James M. Weichert, President and founder of Weichert Realtors, one of the nation’s largest independent real estate companies.

To qualify for this credit, the repeat buyer and first-time homebuyer need to have signed a binding contract by April 30, 2010 and close on the home by June 30, 2010. Tax credit eligibility is subject to income limits, $125,000 for single buyers and $225,000 for couples. In addition, the sale price of the home being purchased cannot exceed $800,000.

Existing homeowners do not need to sell their homes to qualify to purchase a new home. They can rent it out if they wish to do so. However, if they want to sell their home before purchasing another, Weichert encourages them to move quickly. It typically takes three months or longer to sell a home. That’s why it is critical repeat buyers put their home on the market right away or they may not leave themselves enough time to both secure a buyer for their current house and find a new home by the April 30^th deadline.*

*rismedia.com, Repeat Buyers Need to Act Fast to Capitalize on Expanded Tax Credit, posted by Susanne on January 23, 2010.