The Senate has approved an extension on the required date for closing a transaction in order to qualify for the $8000 first-time buyer tax credit. Differences in the House and Senate versions of the bill need to be resolved before final approval.
First time home buyers who were in contract by April 30th, and who qualified for the up-to $8000 tax credit, have been given another three months to close on their new home. The extension to September 30th will allow lenders to catch up with their backlog of approximately 180,000 buyers nationwide.
The applications for these loans are already in the pipeline, so there will be no additional costs added to the tax credit program due to the extension. It does not extend the April 30th deadline to enter into a contract.
The NAR supported the amendment because as much as one third of qualified applicants have been told by their lenders that they won't be able to close by the June 30th deadline simply due to the number of loan applications in process.
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