There has been much confusion over the impending ending of the $8,000 first time home buyer tax credit. The tax credit is a stimulus incentive that was set to expire on December 1st 2009.

The tax credit allowed first time home buyers acquiring their primary residence with a florida hard money to receive a tax credit of up to $8,000. With the demise of the program many feared that house sales would decrease and a market revival would be greater delayed.

Introductory reports are that the Senate has not only passed an extension of the first time home buyer tax credit, but an add on that would permit current home owners to also be eligible for a tax credit on a new house purchase as well even using Florida Hardmoney!

Sources within the Senate have leeked that there is a beginning agreement to continue the so called “first time home buyer tax credit” until the end of April 2010. In addition they intend to expand the program to include a tax credit of up to $6,500 for home purchasers that already own a home. The senate sources hintedthat one stipulation on current homeowners looking to buy a new home and get the $6,500 credit is that they must have lived in their owner occupied residence for the last few years.

It appears they will try to attach this new home buyer tax credit extension to the unemployment extension bill. It’s still unclear as to when the extension will arise for a vote, but this primary report is incredibly positive news for the housing market.

Thousands of families have already been able to purchase a owner occupied home and take advantage of the first time home buyer tax credit. This proposed month extension and expansion will allow several thousands more to take advantage of it as well.

One point of trouble for many potential owners is not being able to access the tax credit early and use it as part of the down payment on their home buy. While HUD has allowed the use of the tax credit as down payment, mortgage companies as we have seen very often, have not gotten on board with it and largely ban the use of the tax credit for down payment. Third parties had been advancing borrowers money to use as down payment in some reported cases. This is still not widely accepted by financial institutions and borrowers have had to wait until tax time to receive their credit.

If you have been in the market to get a loan it looks like you will have until the end of April to get a Uncle Sam incentive to do so!