Closing Deadline Extended for Tax Credit Home Buyers
Late Wednesday night Congress extended the closing deadline by three months for First-Time Homebuyer Tax Credit purchases. The unanimous Senate vote followed a 409-5 House vote Tuesday. President Obama is expected to sign the law immediately.
The extension helps only those that entered into binding contracts by April 30 by giving them until September 30 to complete the purchase. Under current law, buyers had to close by June 30 to be eligible for the tax credit.
The National Association of Realtors estimates that the extra time will help about 180,000 qualifying buyers (plus the sellers depending on those buyers) who would not have met the Wednesday deadline, largely due to factors beyond their control. Mortgage lenders have been backlogged by the volume of buyers trying to close their purchases by June 30.
