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Support builds for homebuyer tax credit

Obama administration backs higher loan limits

The Obama administration is urging Congress to approve a limited extension of the first-time homebuyer tax credit, and a one-year extension of the temporary $729,750 loan limit in high-cost housing markets for mortgages backed by the Federal Housing Administration, Fannie Mae or Freddie Mac.Senate Democrats are reportedly proposing an extension of the first-time homebuyer credit, due to expire on Nov. 30, to apply to homes under contract by April 30.The extension would maintain the current cap on the credit, which is equal to 10 percent of a home's purchase price, at $8,000, but expand the program to allow homeowners who have lived in their home for at least five years to claim a credit of up to $6,500 if they decide to move.Income limits would also be expanded from $75,000 to $125,000 for individuals and from $125,000 to $250,000 for couples, Bloomberg reported, citing an aide to Senate Majority Leader Harry Reid, D-Nev. The measure is to be attached as an amendment to HR 3548, a bill...

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