For some prospective homeowners, April 30 will be a sad day. This day marks the end of the Home Buyer Tax Credit, and those individuals who are not fortunate enough to sign a purchase contract by Friday can say goodbye to that tax incentive. But there is good news for certain military personnel. The tax credit, with revisions, has been extended to 2011 for those who have had extended duty oversees. So, those men and women who couldn’t conduct a house search due to their service can still receive the tax credit and combine it with a VA home loan to receive multiple benefits!

New Details of the Extended Home Buyer’s Tax Credit

This extended tax credit is specifically for military men and women who have served at least 90 days of official extended duty overseas between January 1, 2009 and April 30, 2010. When they buy a home, the purchase contract must be signed by the end of April 2011, and then there is a 90-day time limit to close. Both the $8000 tax credit for first-time home buyers and the $6500 tax credit for existing home buyers will be part of the extended tax credit. Borrowers will still need to meet the income requirements to be eligible for the tax credit. Also, the purchase price of the home must be less than $800,000.

With the original tax credit, the homeowner was required to live in his or her home as a primary residence for at least three years or the tax credit would have to be repaid. That rule will now be waived for eligible service men and women. If a service member no longer uses his or her home as a primary residence due to official extended duty outside the United States, there will be no penalty. With this change, members of the military can serve their country without worrying about not meeting the tax credit requirements.

The Tax Credit Plus VA Home Loan Benefits Equals Fantastic Savings!

Homeowners and prospective home buyers in the military can use the home buyer tax credit in conjunction with their VA home loans. In addition to receiving a tax credit, homeowners can receive low VA home loan rates and can save thousands of dollars by not having to pay mortgage insurance or make a down payment on their purchase; these features are unique to this type of financing. Current homeowners can also save money by choosing from several VA refinancing options that allow them to change the terms of their VA or other home loans and secure lower rates to reduce their mortgage payments!

All service men and women who are eligible for the tax credit should consider financing their homes with a VA home loan. These loans offer multiple benefits to both new and current homeowners that allow them to save money. VA home loans also have less stringent eligibility requirements than other types of home loans, so it is easy to qualify! Borrowers only have to meet certain income requirements and have a clean credit history of at least one year to be eligible for this type of financing.

It is nice to see the government taking the housing needs of its service men and women into consideration. With the tax credit extension, active duty members who were serving their country during the time frame for the original tax credit can now take the time to conduct their house search, purchase a home, and receive their tax credit. Individuals in the military who have more questions about the extended tax credit and eligibility requirements should speak with a loan specialist who can answer their questions and provide them with more information.

Author Bio: Victoria Belle-Miller is the newest member of the VeteransLoans.com writing staff. Her background in journalistic writing and ability to evaluate the issues that Americans face in daily life make her a strong addition to the VA loans team!

Category: Finances
Keywords: VA loans, mortgages, home loans, soldier, veteran, tax credit, benefits, active duty, country