Time to take advantage of the first-time home buyer tax credit, instrumental in spiking home sales throughout the nation, is nearing an end. To take advantage of the credit, home buyers had to have a signed Purchase Agreement by April 30, and closed their loan by June 30.
However, the current state of the housing market has been working against many hopeful tax credit recipients. The glut of homes stuck in a lengthy short sale process, coupled with the backlog created by the surge in home sales, means a sizable number of buyers with qualifying Purchase Agreements are having trouble meeting the June 30 closing deadline.
Well, there’s positive news coming out of Washington for those home buyers.
Today, the Senate approved a measure extending the closing deadline. The provision, attached to the controversial American Jobs and Closing Tax Loopholes Act of 2010 (H.R . 4213), proposed extending the closing date from June 30th to September 30th. The proposal does not affect new contracts, only those that met the April 30th Purchase Agreement requirement.
But don’t celebrate just yet! It’s important to note that the extension is not yet officially law. The proposal is now headed to the House as part of a larger measure to extend tax policies and renew various federal programs. We’ll keep you posted on developments.
The $8,000 first-time home buyer tax credit was part of the stimulus bill signed into law in February 2009. In November 2009, the law was expanded to included a $6,500 credit for buyers who owned homes already, creating even more incentive for Americans to take advantage of low rates and low home prices.
WE WANT YOUR FEEDBACK
Trackbacks/Pingbacks
[...] Tax Credit Closing Extension Passes Senate | Quicken Loans … [...]
[...] View full post on Quicken Loans Mortgage News [...]