Will First Time Homebuyer Tax Credit Continue
Lobbying intensifies to extend first-time buyer tax credit
By Kenneth R. Harney
Washington Post Writers Group
August 30, 2009
It’s one of the biggest unknowns bugging would-be buyers of houses and condos this summer: Will Congress let the $8,000 nonrepayable tax credit for first-time purchasers expire as scheduled about three months from now? Or will the credit get a second life and be extended for six to 12 months, taking pressure off buyers, real estate agents and settlement companies?
That’s an especially urgent matter if you’re a buyer just starting to shop and you see entry-level prices bottoming out or rebounding. The tax credit statute requires buyers to fully close on their purchases –– not just be under contract –– no later than Nov. 30. This doesn’t leave a lot of leeway for people who haven’t yet decided on a specific house and who haven’t nailed down mortgage financing.
The whole process of negotiating offers, signing sales contracts, applying for a loan and completing the closing can easily extend for two months –– or a lot more.
Given the rapidly approaching deadline, what’s the likelihood that Congress will blow the whistle and allow at least a little extra time? Though Congress is on its summer break, most members of the Senate and House use part of the August recess to listen to constituents back in their home districts.
Read full article here.
Tags: first time homebuyer, House, loan, Senate, tax credit