The existing $8000 first time home buyer tax credit will be extended under a proposal by Senate Democrats. In addition to that, some people who already own a home and buys a new one could qualify for a $6,500 credit if they have lived in their prior residence for five years.

“The compromise we have now would expand the credit beyond first-time home buyers,” Lachapelle said, an aide to Senate Majority Leader Harry Reid.

Here is a summary of the proposal:

* First time home buyers, the income level to qualify is $75,000/150,000 (couple).
* For step up buyers the income level to qualify is $125,000/250,000 (couple).
* For first time buyers the credit remains $8,000.
* For step up buyers, they must have been residing in their primary residence for 5 years.
* For Step up buyers the credit is 10% of the sales price, with a maximum of $6,500.
* 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.

Make sure to check out the site for more related information about First Time Home Buyer Tax Credit .

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