As many homeowners rushed to take advantage of the homebuyer tax credit before it expired on April 30, 2010, some found themselves in a tight squeeze to meet the June 30, 2010 closing deadline. The Phoenix Business Journal reports that the proposed 90-day extension has been approved unanimously by Congress. Homebuyers now have until September 30, 2010 to close on their houses and receive up to $8000 in tax credits.
This is the third time an extension has been granted for the program since the tax credit’s creation in 2008, but this particular one only includes those whose contracts were signed by April 30th.
The National Association of Realtors along with other realtor groups pproved of the proposal to extend the deadline saying that as many as 180,000 homeowners risked losing the tax credit because they would not be able to close by the initial deadline with the overwhelming number of housing contracts that flooded the system last-minute.
“This was the right thing to do on behalf of homebuyers,” said MAAR president Glenn A. Moore in a statement. “These transactions can be completed before the Sept. 30 deadline and people will receive their tax credits.”
Additionally, the tax extension comes at the same time that 30-year fixed rate mortgages are at record lows. Good news for those who are now able to receive the tax credit under the new 90-day extension.
Along with the tax credit extension, Congress also reauthorized the National Flood Insurance Program to the same deadline (September 30).
According to the NAR, there will be gap between June 30 and the date President Obama signs the bill into law.
However, this should not affect any homeowner who has met the April 30th requirement.
If you missed out on the tax credit opportunity, don’t worry. There are still many affordable opportunities for homeowners on the path to homeownership.
Equal Housing Opportunity