As you may be aware the Senate voted 60-37 last Wednesday to extend the First Time Home Buyer Tax Credit until September 30, 2010 ONLY for buyers who had signed contracts by April 30, 2010. Due to the fact that many buyers have offers on short sales the time to hear back from the bank and close was not enough. This way they could take advantage of the tax credits provided they get the bank approval and close by September 30th. Without it, buyers must close the deal by the end of June to get the $8,000 first-time credit or the $6,500 credit for people who already own homes.
This still needs to pass the House vote but most believe it should. The good thing about the extension is that is should not have an affect on the goverment's projected budget. They already figured on these purchase agreements to close by next week.
****Special Rules for Members of the Military, the Foreign Service and the Intelligence Community****
Remember if you or someone you know is a qualified service members who are ordered on a period of official extended duty, these dates are extended for one year. For these home buyers, the tax credit applies to sales with a binding sales contract in place on or before April 30, 2011 and closed by June 30, 2011! This means you do not have to have a purchase agreement written before the original April 30th, 2010 date.
A person who is forced to return to the U.S. for medical reasons before completing an assignment of at least 90 days of qualified official extended duty outside of the United States may qualify for the one-year extension.
For more info visit: http://www.federalhousingtaxcredit.com/service_mem.php