How much is the tax credit worth?

How much is the tax credit worth to those who purchase their first home in 2010?

The American Recovery and Reinvestment Act authorizes a tax credit of up to $8,000 for qualified first-time buyers whose income falls below levels specified by the Act. Qualified existing homeowners can receive a tax credit of up to $6500 when they purchase a new home.

With the extension of the Act, first-time buyers must have their new home under contract by April 30, 2010 and closed by June 30, 2010. For those who owned another home for at least five years, the new home has to be under contract before May 1, 2010 and closed by June 30, 2010.

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