Possible Extension to Homebuyer Tax Credit... Or Not?

June 15, 2010
2 min. read time

Rumors of a Possible Extension of the Homebuyer Tax Credit now appear to be short lived! This Tax Credit may be back on hold as of 06/25/2010. When we know more, we'll post it right away!

(from earlier post on 06/16/2010) If you haven't been informed yet, the Homebuyer Tax Credit has almost ended with less than a month left for First Time Home Buyers and Current Homeowners to close their deals and qualify for the Tax Credit. While this opportunity was a great chance to get hefty Tax Credit from the government ($8,000 for First Time Home Buyers and $6,500 for Home Owners buying and moving into another home), it may be a problem for those who applied near the end of April and are still trying close their loans. Right now, those Tax Credits were set to expire for any loans that had not been closed and funded by June 30th of 2010. You had to have a signed Purchase Contract in place by April 30th. As a result, some Purchases are starting to fall apart because they are "In Contract" before April 30th but they are not able to close by the end of this month.

Many mortgage lenders have been experiencing hard times closing deals that suddenly appeared in April, and many Mortgage Brokers know "some deals just won't close before June 30th."

There is talk of Harry Reid possibly having a proposal which will allow those who have already signed sales contracts, to close and fund by September 30th as an amendment to a Bill already in Congress that would extend jobless benefits for the unemployed through the end of November.

The National Association of Realtors has been pushing very hard for an extension out of an awareness of the difficulty Mortgage Brokers are having with the current deadline of June 30th. Since the entire process of getting a Mortgage now takes a bit longer than it used to, Mortgage and Real Estate Professionals view an extension of the Tax Credit Program as essential.

First-time buyers were eligible for a tax credit of up to $8,000. Current Homeowners who bought and moved into another home could qualify for a credit of up to $6,500, that may last until September 30th. When we hear of any confirmation on such a proposal, we will be sure to let you know!

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