The government recently extended and expanded the homebuyer tax credit - which now has provisions for both first time home buyers and current homeowners. So you may have questions like "what does it mean?" or "how does it work?" or "does it apply to me" or even "should I buy now?"

Well, to help explain in simple terms what the homebuyer tax credit and how it applies to you, Long Realty recently produced a short video featuring nationally recognized real estate speaker and trainer, David Knox.

Watch the tax credit video now

Here are some key highlights of the tax credit:

 The $8,000 first-time homebuyer tax credit is extended

• Now, qualified first-time home buyers would receive their $8,000 tax credit if they sign a purchase contract by April 30, 2010 and close by June 30, 2010
• The home purchased must be their primary residence
• Buyer cannot have owned a home during the past three years
• Tax credit is up to 10 percent of the home’s value (not to exceed $8,000)
• Annual income caps to qualify for the tax credit will increase ($125,000 for single filers / $225,000 for joint filers). Partial tax credit can be granted for incomes up to $145,000 for single filers / $245,000 for joint filers

• Eligible home buyers must have lived in their current home for five consecutive years of the past eight years
• The new home’s cost need not exceed the current home
• Eligible for homes with purchase agreements written by April 30, 2010 and that close between Nov. 6, 2009 and June 30, 2010
• Annual income caps to qualify for the tax credit will increase ($125,000 for single filers / $225,000 for joint filers). Partial tax credit can be granted for incomes up to $145,000 for single filers / $245,000 for joint filers

Get Answers to Frequently Asked Questions

And if you are ready to start shopping for a home, visit www.LongRealty.com