With the November 30th first time home buyer deadline quickly approaching, the U.S. government has been working around the clock to roll out an extension for the $8,000 tax credit for first time home buyers. In addition to the tax break extension, the Senate has also introduced a new perk for current homeowners shopping for a new primary residence.

Will you qualify? Learn about the tax incentive extension details and what it might mean for you and the housing market by reading on.

Who qualifies for the credit?
The tax break offers an $8,000 tax credit to those individuals buying their first home, those who have not owned a home in the past three years. The government is also offering a new perk for those homeowners shopping for a new primary residence. Those buying a new primary residence would be eligible for a $6,500 tax credit if they owned their current home for five consecutive years in the previous eight.

Be sure to contact Pacific Riviera Mortgage to ensure you are aware of all the tax break details and for assistance in determining whether or not you qualify for either credit.

What are the deadlines?
Those individuals buying their first home or a new primary residence must sign a contract by April 30th and close by June 30th 2010 as opposed to the November 30th 2009 deadline which has put home shoppers, real estate agents and mortgage brokers in quite a bind these past few months.

Members of the military serving outside the United States for 90 days or more are also able to take advantage of these incentives. For those serving our country overseas, the tax credit would be extended an additional year, until June 30, 2011.

Tax incentive advocate and former real estate executive Sen. Johnny Isakson reports that this tax break extension is the last. Work with your Pacific Riviera Mortgage mortgage professional to ensure your purchase meets the tax credit guidelines.

Any restrictions?
There has been an increase in the level of qualifying incomes for individuals and couples over the age of 18. Individual tax filers who make up to $125,000 are eligible, and couples making up to $225,000 a year also qualify. Those individuals who earn up to $145,000, or $245,000 jointly, would receive a smaller credit that drops as income rises.

Though there has been a slight increase in qualifying incomes, the tax break was never designed to cater to those individuals at the high end of the market. Principal homes costing more than $800,000 are not eligible for the credit and neither are vacation homes.

Contact your Pacific Riviera Mortgage mortgage specialist by calling (805) 687-6282 to determine whether your income qualifies you to cash in on the tax rebate.

Will this improve home sales?
This extension is expected to steady the housing market and give the economy a much needed boost. Since the tax credit was introduced as part of the economic stimulus package in January of 2009, about 1.4 million first time home buyers have qualified for credits of up to $8,000. The National Association of Realtors estimates that roughly 350,000 of these home sales were due to the tax incentives and the buyer would not have purchased otherwise.

If this is the case, chief economist at Moody's Economy.com, Mark Zandi, is right to think this extension could potentially produce 500,000 additional home sales these coming months.

Before shopping, contact Pacific Riviera Mortgage to find out whether or not you qualify for the tax credit and determine what loans you can qualify for. Your Pacific Riviera Mortgage mortgage specialist can ensure you are pre-approved for your loan, thus enabling you to shop with a specific budget and accelerate the purchase process.

Keeping You Informed
Pacific Riviera Mortgage is dedicated to keeping you informed of the latest market trends and mortgage options. Visit us online at http://prmsb.com, or call today at (805) 687-6282, to obtain custom loan options designed to fit your needs and help you obtain your home ownership goals.