Senators have agreed to extend the $8,000 first-time homebuyer tax credit originally set to expire on November 30. Once the Senate officially votes on the bill it will move to the House of Representatives, which strongly supports the extension. The Obama administration has also signaled its strong support for an extension of the tax credit.

Aside from the first-time homebuyer credit, the new plan would offer a $6,500 credit for repeat or move-up homebuyers who have lived in their primary residence for five years or more. The tax credits would be available to buyers who sign purchase agreements on a new or existing primary residence between December 1, 2009 and April 30, 2010. Buyers would have until June 30 to close on their new homes.

There is an $800,000 price limit on all homes eligible for the credit. The income limits for all buyers would rise to $125,000 per year for individuals and $225,000 for married couples. Under the current program, the limits are $75,000 and $150,000 respectively. The first-time homebuyer credit is also available to those who have not owned a home in the previous three years. The credit does not have to be repaid unless the home is sold or ceases to be the primary residence within three years.

According to the Treasury Department, more than 1.2 million borrowers have claimed $8.5 billion of the $13.6 billion set aside for the first-time homebuyer tax credit.

Please be advised that this legislation has not yet passed, but I will be sure to keep you informed as it moves through Congress toward approval. Call me if you have any questions, or if you would like to get started on for a home today!

City Heights in Downtown San Jose has become the first high rise to except FHA loans. After opening there sales office over two years ago City Heights has finally reached the 50% sold rate that is required for a building to become FHA approved. To be exact they are at a 52.4% occupancy rate, almost twice as many sold unites as the next closest high rise.

So call your lender today and find out about the FHA loan requirements. Once your approved you could also qualify for record low down payments of just 3.5 percent. City Heights will be the only high-rise downtown that qualifies for FHA financing and offers such a low down payment option.

City Heights residents (more than half the building is occupied) are enjoying downtown living with fantastic views at a great value. No other high rise in downtown San Jose offers as much for as little as City Heights. Tour the models and you’ll discover modern one- and two-bedroom deluxe homes and lofts with sweeping skyline views and spacious, open floorplans.

Residents of City Heights, located in downtown San Jose, are an easy stroll from great restaurants, art galleries and shopping. City Heights also offers convenient access to Mineta San Jose International Airport as well as highways 101 and 87 and interstates 280 and 680.

Call me ( Danielle Contreras ) to take you on your first visit the City Heights San Jose sales center and models daily from 10 a.m. to 5 p.m. at 175 W. St. James St., just off Market Street. For additional information call (408.850.7994).