The home buyer tax credit is extended until Sept. 30! For all the new home buyers panicking when they weren’t able to get their closing done by the deadline yesterday, help is on the way.
The home buyer tax credit extension will apply to both first time home buyers and existing home owners originally eligible for the tax credit.
Both the House and Senate approved the extension, which originally ended on June 30 . The President must sign the home buyer tax credit extension before it becomes law.
Home Buyer Tax Credit Extension
The terms of the first time home buyer tax credit and existing home owner tax credit extension are:
- Home buyers with signed contracts will get until Sept. 30, 2010 to close on their new home.
- Sales contracts must have already been in place by April 30, 2010.
- Tax credits are still $8,000 for first time home buyers  and $6,500 for existing home owners .
Why the Extension?
People had months to close, why do we need an extension? Apparently, slow banks are to blame. Especially in the case of foreclosures and short sales, where the banks often take many months to complete the transactions.
Will the Extension Apply to New Contracts?
No. The extension is only for buyers who are already under contract. If you are currently in the market to buy a house, you’re out of luck.