Income limits have been raised for Virginia Beach area homebuyers, and now some existing homeowners can also claim a credit if they buy a new home too.

The basics:

  • To claim any credit, buyers must have a contract by April 30, 2010 and close by July 1, 2010.
  • The income limit has been raised to $225,000 for couples.
  • First-time buyers can claim an $8,000 credit, as before.
  • Buyers who already own the home they are selling (or have sold), and have lived there for five of the past eight years can claim up to a $6,500 tax credit (on homes worth $800,000 or less).
  • Both credits apply only to primary residences.

imageClick here to view or download a chart (PDF) explaining the difference between this credit and the one set to expire on November 30.

VAR already has a new flyer to help you inform your clients about those expanded tax credits. You can download it today at www.VARealtor.com/Tools.

And NAR has a host of information on its site, including a useful Q&A about the updated credit (PDF), with answers to questions like “Must the new house cost more than the old house?”