First-time homebuyers aren’t the only real estate risk takers about to receive a payoff from the government during a dormant housing market.

Congress voted to not only expand the $8,000 first-time buyer credit set to expire in November 2009, but to add an additional $6,500 credit toward buyers who have been in their current residences for at least five years. President Barack Obama is expected to sign the legislation into law.

The IRS says about 1.4 million people applied for the homebuyers credit first time around. The legislation would extend the program through June 2010, as long as the buyer signs a contract by the end of April 2010. The measure also doubles the income ceiling for eligible individuals to $125,000.

Homes must cost less than $800,000 to qualify. Taxpayers can claim the credit on their federal income tax returns. If the credit exceeds their tax bill, the government will issue a payment. The estimated cost of extending the program tallies to $10.8 billion.

Recent index reports housing sales have increased in the last seven months. Regionally, the largest increase was seen in the West, up 16 percent. The smallest increase was seen in the South. Some analysts believe this increase in pending sales is related to the first-time homebuyer tax credit. A total of 40% of all housing sales in the last couple years has been from first-time buyers.

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