To qualify for the $8,000 tax credit, first-time buyers must close on their homes by November 30. As closings have been taking between 30 and 60 days to occur, time is running out for first-time buyers wanting to cash in.
Although an extension to the current bill far is from a certainty, two current may have the potential to pass before the deadline.
- S (Senate) bill 1678 would extend the current credit exactly as it is for another six months, expiring on June 1, 2010.
- HR (House of Representatives) bill 3590 would extend the tax credit for a year, but it would add a requirement that only service members who were on duty overseas for at least ninety days during 2009 would qualify.
A Zillow survey found that one in five potential first-time buyers said an extended tax credit would be their primary reason to buy in the next six months, while 43% said that it would be either the primary reason or a significant factor. The cost of extending the current credit “as is” is a major concern in Congress. This year’s credit is set to come with a price tag of $14 billion, reaching an expected 2 million new homeowners. During the additional six months, the Senate’s version of an extension would cost nearly as much and reach nearly as many people as the current bill.
While it may mean good news for those first-time buyers who miss the deadline, it would be wise for buyers counting on the tax credit to meet the deadline.
If you are interested in learning more about First-time home buyer programs, please give Tracy Baranowski a call at 850.259.4270 or Craig Baranowski at 850.259.1788 or email us info@teambaranowski.com.
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