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A Compromise on Home Buyer Tax Credit?

For all of you who emailed me last night asking, "What the h— is up with the tax credit extension???"

Home and Taxes
Home and Taxes

The answer is that there may have been a bit of a revolt among Democrats who didn't want the controversial measure attached to the Unemployment Insurance bill.

That said, sources are telling me that there may be a compromise among Senators Dodd and Lieberman and Senate Finance folks, like Baucus and his staff.

Here's how it would work, and again, this is just a source telling me this, not necessarily what will happen:

  • For first time homebuyers, the income level to qualify is $75,000/150,000 (indiv/joint)
  • For step up buyers the income level to qualify is $125,000/250,000.
  • For step up buyers, they must have been residing in their primary residence for 5 years.
  • The credit is 10% of the sales price, with a maximum of $ 7,290.
  • The credit runs from Dec. 1, 2009 to April 30, 2010.
  • For legitimate sales contracts as of April 30, 2010 you have 60 days to close
  • There is a waiver for military.

This is what I hear. Stay tuned. It could all change dramatically.

Questions? Comments? RealtyCheck@cnbc.com

  • Diana Olick serves as CNBC's real estate correspondent as well as the editor of the Realty Check section on CNBC.com.

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