The first time homebuyer tax credit has been extended….

The first time homebuyer tax credit has been extended….

 

The end to the first time home buyer has been closing in on us.  The deadline to receive the tax credit was to end on June 30, 2010.  Yesterday the Senate passed an extension to extend the deadline to September 30, 2010.  First time home buyers still needed to be under contract by April 30th of this year to be eligible.  According to the National Association of Realtors there are approximately 180,000 contracts out there that might not have been able to close by June 30th. 

 

Why you ask?  One reason is that the lenders are overloaded right now.  The first time home buyer tax credit was so successful that mortgage lenders are going to be hard pressed to meet that deadline.  It doesn’t state this in the article but another reason the closings would not occur by June 30th is some buyers are still waiting on approval from lenders on short sales.  Through no fault of the buyer they were going to miss out on receiving their incentive to purchase.  This will give the buyers three extra months to get the deals closed. 

 

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