Tax Credit Closing Deadline Now Sept. 30

By Amanda Okker, RE/MAX Times Online Editor

U.S. homebuyers who are eligible for a Homebuyer Tax Credit now have until Sept. 30 to close the transaction and receive the credit.

Congress has extended the closing deadline, which had been June 30, by an additional three months. President Barack Obama signed the legislation July 2. 

The action affects an estimated 180,000 homebuyers who were under contract by April 30, but because of circumstances beyond their control, had been unable to close on their purchase by June 30. Short Sale and REO transactions are holding up many of these closings.

Read a Reuter's news article for more informaton about the extension. Share this remax.com consumer article with your buyers.

Qualified first-time buyers can receive a credit of 10 percent of the home price up to $8,000. Repeat buyers are eligible for a credit of up to $6,500.



The National Association of Realtors estimates that 4.4 million people have received the credit since it was made nonrefundable in 2009. That includes 2.9 million first-time buyers and 1.5 million repeat buyers.

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Comment on this story
E-mail your comments to editor@remax.net. Please include your full name, RE/MAX office, city and state or province. Comments, slightly edited for length, flow and punctuation, will appear below.

Comments (3)
Extending the Home Buyer Credit would cost tax payers in excess of a billion dollars. 
- Carolyn Strout, RE/MAX Properties, Nashua, N.H.

Unfortunately these buyers bought homes with the anticipation of receiving a tax credit. The delays in closing should not negatively affect these buyers. Also, the extension of the National Flood Insurance Program is also up in this political game. Please urge your Senators to allow both bills to be considered independently of the unemployment extension program. This is the bill in the Senate that has been bundled with the tax credit extension and National Flood Insurance Program that has caused the entire bill to be rejected by the Senate. Ask your Senators to vote for each bill independently so we can stop the huge negative affects that have been pushed onto the struggling Real Estate Markets!
- Matt Johnson, RE/MAX Ocean Properties, Morehead City, N.C.

You are most likely aware of the California tax incentive of $10,000 for first time buyers. However it is odd that no one has mentioned how ridiculous it was to allow buyers to double dip and receive $18,000 instead of continuing our market recovery by giving the 10,000 homebuyers an opportunity for the credit if they were not able to secure the Federal Tax Credit. How can the State of California be so shortsighted.  Why don't they speak with a Realtor prior to make such hasty decisions?
- Tony Lewis, RE/MAX of Valencia, Valencia, Calif.