First Time Homebuyer Credit Extended?
Senators Reid, Dodd, Liebermann and Isakson have introduced an amendment to the American Jobs and Closing Tax Loopholes Act extending the time period for First Time Homebuyers to close on the purchase of their homes. If the Legislation with Amendment passes, those buyers who entered into a binding contract, on or before April 30, 2010, to purchase a home will have until September 30, 2010 to close and still qualify for the deduction of 3% of the purchase price up to a maximum of $8,000. It appears there's enough support for this Legislation to pass.
According the the National Association of Realtors, the First Time Homebuyer program work so well that many of the lending institutions could not handle the sudden influx of sales. Many of these buyers became involved with short sales and now find themselves dealing with a number of delays through no fault of their own. It is the hope of the four Senators that the entension to September 30, 2010 will provide enough time for the remaining first time homebuyers to close on their contracts so that they too will qualify for the tax credit.