Can you say “whoopee?”
Late Wednesday night (June 30th), the Senate took the lead of the House of Representatives and passed the Homebuyer Assistance and Improvement Act which extends the CLOSING date for those eligible to receive the federal tax credit under the American Recovery and Reinvestment Act. This is part of the bill that was presented. You can see other details of this bill here.
First time buyers, those who haven’t owned a home in the last three years, as well as current owners who have owned a primary residency 5 of the last 8 years, were eligible for a tax credit if they purchased a primary residence — up to $8000 or $6500 respectively. The guidelines required buyers to have a signed purchase by April 30th and CLOSE on the home by June 3oth.
The problem was that many of these home purchases were being held up buy a multitude of things — the banks that own the homes, the banks that are considering a short sale for the sellers and even title and mortgage companies. The argument was that the buyer was not at fault for this delay if they had the signed agreement by April 30th so they shouldn’t be penalized. Low and behold, buyers now have until September 30th to close on their house to still get the federal tax credit!!
So, if you are one of those people that thought you missed out on the credit because something was preventing you from closing on your home prior to June 30th, yesterday, then you can breathe a sigh of relief! Good luck with your process and enjoy this awesome gift from the government!