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Possible Extension of Tax Credit Deadline for New Home Buyers

Missed Your Closing Deadline for the Tax Credit?  Don’t despair; you may still get the credit you deserve!

Are you one of about 180,000 home buyers that went into contract by April 30th but may miss the tax credit because you haven’t closed yet?  Because of the popularity of the tax credit, lenders and appraisers have experienced closing delays.   If this is affecting you, there is good news!

The House just passed a bill on Tuesday that would extend the deadline for closing on a home to receive the $8,000 tax credit.  Previously, home buyers that went into contract by April 30th had to close on the home by today, June 30.  The new bill will extend that deadline from June 30 to September 30th.

The bill has not yet passed through Senate, and is part of a larger bill that includes unemployment benefits.  While the bill passed with an overwhelming majority in the House (a vote of 409-5), its fate with the Senate is not certain.

The new bill does not affect home buyers that were not in contract by April 30th.   At this time, there are no plans to extend the tax credit for new home buyers, the main goal is to ensure that all of the home buyers that qualified in the old bill will not miss the deadline because of third party delays.  

Many new home buyers were counting on the $8,000 and planned their home purchase timeline and budget with the tax credit in mind.   Many government officials are aware of this, and are working to make sure home owners will get the credit they deserve.