Home Buyer Tax Credit To Be Extended
Homebuyers Could Get More Time to Claim Tax Credit
First-Time Homebuyers looking to land an $8,000 Tax Credit, and Move-Up Home Buyers hoping for a $6,500 Tax Credit windfall may have a little more time to close on their purchases if a Senate amendment unveiled last Thursday makes it into law.
As it stands now, homebuyers must have signed purchase contracts by April 30, 2010 and must close the deal by June 30, 2010. They could be eligible for an $8,000 Tax Credit if they are First-Time Buyers or a $6,500 Tax Credit if they owned and lived in their previous home for five of the last eight years.
The June 30 closing deadline, however, could be pushed back to Sept. 30 under an amendment co-sponsored by Sen. Chris Dodd, D-Conn. The senators said they want to make sure that lenders, like ENVOY MORTGAGE, have time to process the transactions -- especially short-sales, which is a more involved process.
By extending the closing deadline, the hope is that everyone wanting to purchase of their new home can complete the transaction in time to take advantage of the Tax Credit. There is no indication that the contract date of April 30 will be extended also.
It remains to be seen, however, whether the amendment will go anywhere. It's part of a controversial jobs and tax bill that may be radically changed before the Senate approves it. Lawmakers are not scheduled to vote on the bill until next week at the earliest. Let's keep our fingers crossed
If I can answer any questions you have about how extension of the Tax Credit may affect you, do not hesitate to give me a call. I appreciate the opportunity to help.
Home Buyer Tax Credit To Be Extended
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