New Deadline for tax credit approved by Congress

Homes.com

Homebuyers who were under contract by April 30th and qualified for the original homebuyer tax credit, now have more time to close on their home due to a major backlog of mortgage applications. This amendment does not allow more time for additional homebuyers to qualify for the tax credit, but merely allows more time for those who have already qualified to close.

With this new approval, the closing deadline for the home buyer tax credit has been extended from June 30th to September 30, 2010. According to Senator Harry Reid of Nevada, the extension will allow lenders to clear a backlog of 180,000 homebuyers nationwide.

The amendment falls under the “American Jobs and Closing Tax Loopholes Act of 2010,” which also extends unemployment insurance benefits.

Senator Reid states on his website; “I am committed to ensuring that more Nevadans and Americans can become homeowners and that this amendment becomes law.”

According to the National Association of REALTORS®, about one third of applicants who qualified for the tax credit were told by their lenders that their loan will not close by June 30th because of the enormous volume of loan applications. Additionally, home builders have been working overtime to finish new construction homes in time to produce a certificate of occupancy for the closing deadline.

In a statement from NAR; President Vicki Golder says; “Since these applications were already in the pipeline and figured into the program’s cost, the extension of the closing deadline should not incur any further government costs.”

Click here for more information regarding the original home buyer tax credit extension.

SOURCE: Inman News

Jason Parker

Jason Parker

Jason worked for several years in the real estate industry as a licensed agent and member of the National Association of REALTORS. He has an MBA from Florida State University and enjoys writing about how agents can improve their marketing efforts.
Jason Parker

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4 thoughts on “New Deadline for tax credit approved by Congress

  1. UPDATE: It’s almost official: The Senate approved a three-month extension on the homebuyer tax credit for buyers in escrow late last night. The House voted in favor of it 409 to 5 on June 29 and the Senate vote was unanimous. The last step for the bill is a signature from President Obama, which may happen as soon as today.

  2. i have mixed emotions. As a realtor it will help my clients that bought on short sales and haven’t closed yet to get the credit. But the day of reckoning has to come with the deficit our government continues to run up

  3. Great move by Congress. I work at Norstar Mortgage, a small mortgage broker in Pennsylvania, and this new deadline will help our business tremendously! It is also going to get the American people the homes and mortgages that they need.

    Greg Frantz
    Norstar Mortgage