First Time Home Buyers Tax Credit Deadline May Be Extended
Good news for first time home buyers who are trying to take advantage of the first time home buyers tax credit or the “move up” tax credit that is scheduled to expire on June 30, 2010. Right now, if the transaction doesn’t close by the deadline, buyers will lose the credit of $6,500 or $8,000. Even if the closing doesn’t occur because the lender couldn’t push through the loan in time. With many lenders facing a daunting bottleneck of these loans, Congress is quickly pushing through legislation to extend the deadline to close on credit-qualifying transactions through September 30th, 2010. Senate majority Leader Harry Reid(D-Nev), with the support of Johnny Isakson (R -Ga) and Christopher Dodd (D-Conn.), sponsored a bi-partisan amendment to a pending job and tax bill which would extend the deadline, currently set to expire June 30th. The bill passed this week by a vote of 60-37. While, the bill must still be passed by the House and signed by the President before it becomes law, there is little rationale to deny its passage.
The extension will relieve the pressure on the lending industry to push through home loans by June 30th, which could affect the quality of underwriting. It further alleviates the stress on buyers and sellers who may be relying on the credit, but are completely powerless to speed up the process.
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