The Housing & Economic Recovery Act is designed to help sell the large quantity of homes on the market starting in 2008.
This is a summary of the 3 versions
- First Version 2008:The original credit was for as much as $7,500 for individuals who bought a principal residence in the U.S. between April 9 and Dec. 31, 2008, and who had not owned one for three years prior to the purchase date.
- Second Version 2009 & 2009: Congress increased the credit to as much as $8,000 for individuals who bought a principal residence between Jan. 1, 2009, and April 30, 2010, and who had not owned one within three years of the purchase date. The closing deadline was extended to June 30 for homes that were under contract as of April 30. The deadline was extended again to Sept. 30 for homes that were under contract as of April 30 and did not close by June 30 as planned.
- Third Version 2009 & 2010: This credit offered as much as $6,500 to homeowners who had owned a principal residence in the U.S. for at least five consecutive years in the eight years before the purchase of a new principal residence. The purchase date had to be between Nov. 7, 2009, and April 30, 2010. The closing deadline was extended to the same dates as the second version.