The Senate has passed the bill (HR 3548) to extend the homebuyer's tax credit and now it goes to the House, then to the President to be enacted. The following changes have been made to the original bill:

* credit will now expire on May 1, 2010 instead of December 1, 2009. The homebuyer must have a binding P & S agreement executed by May 1, 2010, and close by July 1, 2010, to take advantage of the credit;

* Income limitation increased from $75k (single) / $150k (joint) to $125k / $225k;

* Purchase price limitation increased to $800k;

* The amount of the credit is still $8000 for first time homebuyers. This bill adds a $6500 credit for homebuyers who have owned and lived in the same residence for 5 of the 8 previous years and purchase a new home before May 1, 2010. (execute P&S, close by July 1, 2010).

Good news for the real estate and mortgage financing markets.