With the deadline for the tax credit approaching, I have heard all sorts of rumors and untruths regarding its extension and expansion. I even saw an article from a well know personal finance magazine that suggested that the buyer only had to be under contract by Nov. 30Th to claim the tax credit. One look at the IRS web site told differently. The point is, we're hoping for this to be extended or expanded and some of us will delude ourselves or others that it has already happened.
To extend this, congress has to agree to it and set the terms. Right now, the climate in Washington is less than perfect for this as they are all fighting on how best to take over the health care industry. As a result our industry concerns; HVCC, Seller funded DPAs, and the first time home buyer tax credit have all been pushed aside. Yes, some in Congress have brought this issue up, but until recently, its been lost in the shuffle.
Yesterday there was some action on the much hoped for extension of the first time home buyer tax credit. The Senate voted to extend the tax credit until April 30Th of 2010. They also clarified that you just have to be in contract by then, and have a further 60days to close. They also provided for a move up buyer tax credit of $6500 for homeowners who have lived at their present homes 5 years or more.
This extension/revision of the first time home buyer tax credit is attached to an unemployment insurance bill, so it should get through, but you never know. The House still has to approve it and any differences reconciled by committee. I wouldn't expect the president to veto it. I'll believe it when I see it.
In the meantime, I'm cautioning everyone who makes application that lenders are not promsing to close on or before the 30th of next month, so be advised.
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