Tax Credit Extension Details

Tax Credit extensions provide some cushion to those who have been under contract since before the deadline.

A very important home buyer tax credit extension was presented on July 2nd to those who have been under contract prior to the April 30th deadline. We posted this via facebook on the date that we received it, but wanted to make sure that those who may have missed out on the information had another chance to review the update. Little reminders are helpful, right?

Northern Virginia Association of Realtors, NVAR, sent out a priority email to their local Realtors: "Tax Credit Extension Passes: After a close brush with a deadline that could have impacted tens of thousands of home buyers, the U.S. Congress last night passed an extension of the Home buyer Tax Credit closing deadline. ...The extension is included in the Home Buyer Assistance and Improvement Act (H.R. 5623) and will prevent as many as 180,000 home buyers from losing their eligibility for the tax credit through no fault of their own. These households had home purchase contracts pending as of April 30 and had until June 30 to close on their purchases to claim the federal tax credit. Under the legislation that passed last night, these households now have until September 30 to close. "

What does this extension mean? It simply means that people who should have been able to close prior to the last deadline will still receive their tax credit. As a reminder, those who are foreign service employees or deployed military personnel can still take advantage of the tax credit through June 30, 2011 as long as they go under contract by April 30, 2011. Should you have further questions about how the tax credit will affect you, or if you are eligible, review the IRS website's frequently asked questions, or contact your real estate professional. Arbour Realty's founding broker Adam Gallegos had a very good point in his recent blog- are you better off buying a home now with the lower interest rates, or with the tax credit. Check out his awesome information. If you think you may be ready now- start your home search here in Northern Virginia.

-Genevieve Concannon

Arbour Realty