Another extension gives you more time to buy.  If you have been thinking about buying that home and thought you missed a golden opportunity from the home buyers tax credit, give up the regret and act fast! The Senate has approved another extension to the Homebuyer Tax Credit until September 30, 2010.

In case you forgot just what the Homebuyer Tax Credit could mean for you, here is a quick refresher on this excellent opportunity for home ownership. 

Homebuyer Tax Credit-What is it?
The Homebuyer Tax Credit is a federal tax credit program that offers up to $8,000 to first-time home buyers and up to $6,500 for those who already own a home.

Are there restrictions?
The Homebuyer Tax Credit can only be used on a property that will be a primary residence for the purchaser and includes income requirements. A single taxpayer must earn less than $125,000, while married couples filing jointly may earn up to $225,000.

What is the new deadline?
You must close on your property by September 30, 2010.  The credit now applies to purchase made from January 1, 2009 through September 30, 2010. 

How do they calculate my credit?
The Home Buyer tax credit is equal to 10 percent of the home’s purchase price.

How do you claim the Homebuyer Tax Credit?
You claim the Homebuyer Tax Credit on your federal income taxes using Form 5405. Simply enter the end number from the completed Form 5405 and claim the amount on your 1040 income tax form. (It is line 67 on the 1040 income tax forms for 2009.)

What if you do not owe the full amount of the tax credit?
The Homebuyer Tax Credit is fully refundable, meaning that the credit will first be applied toward any amount that you owe on your federal income taxes. Any remaining amount will be sent to you as a check.

What do I have to buy?
Any home that would be used as your principal residence qualifies this includes an existing home or new construction (the date of first occupancy is used instead of the date of purchase completion in new construction).

Is there any way to take advantage of the credit now?
The US Department of Housing and Urban Development (HUD) allows homebuyers with FHA-insured mortgages to apply their Homebuyer Tax Credit toward their home purchase immediately, allowing them to use the extra money for down payment or closing costs. This is called “monetization” of the tax credit.