Congress has extended the $8,000 tax credit for 1^st time homebuyers. Contracts written by April 30, 2010 and closed no later than June 30, 2010 will receive up to an $8,000 credit. It is calculated as 1% of the purchase price; therefore, if a purchase of $60,000 is made, a $6,000 credit will be given.

Income limits have been increased to $125K/year for singles and $225K/year for married and the maximum purchase price is now $800K.  The income limits are not retroactive—only for those purchases after November 6th. 

The purchased home must be used as a primary residence for 3 years or the $8K must be repaid to the government.

But this time there’s more! In addition to the 1^st time homebuyer credit, now included in this bill is a $6,500 federal tax credit for so-called "move up" buyers. Effective immediately, potentially hundreds of thousands of Americans who fit the key ownership and income criteria are eligible right now.

What are those tests?

You have to have owned and used your current home as your principal residence for five consecutive years out the past eight years.

The tax credit does not have to be repaid.

The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $6,500.

The tax credit applies only to homes priced at $800,000 or less.

The credit is available for homes purchased after November 6, 2009 and on or before April 30, 2010. However, in cases where a binding sales contract is signed by April 30, 2010, the home purchase qualifies provided it is completed by June 30, 2010.

Your adjusted household annual income cannot exceed $125,000 if you file taxes as a single or $225,000 if you are married filing jointly.

They don’t need to sell their previous residence (!), however be aware of concurrent rules with conventional (30% equity) and FHA (25% equity) to use 75% of proposed rent on the previous residence to offset debt

This is potentially huge for all sorts of people who never thought of themselves as qualifying for a tax credit under any circumstances, because they've owned a home for years.