On November 9, President Obama signed the Worker, Homeownership, and Business Act of 2009. That Act extended the first-time homebuyer credit for purchases signed before May 1, 2010 and closed before July 1, 2010. The new law also makes these changes:

• It limits the credit to homes costing $800,000 or less.
• It raises the income level to qualify for the credit ($125,000 for individual filers and $225,000 for joint filers).
• It extends the credit, up to a limit of $6,500, for buyers who have maintained the same principal residence for any five-consecutive year period during the eight-year period ending on the date they buy a new principal residence.