First-Time Homebuyer Tax Credit Extension–Will Congress GIve Homebuyers More Time?

There was an increase in the number of contracts signed for homes in April, which is accredited to the first-time homebuyer tax credit.  Homebuyers were said to be rushing into the housing market in April to meet the deadline for this tax incentive for those who are either new homebuyers or repeat homebuyers.

However, factors like short sale troubles are said to possibly be a roadblock for those who may be trying to meet the June 30th deadline to close on their home and take advantage of the tax credit.  It’s concerns like this that have many asking for an extension on the deadline to close, as there are fears that some homeowners may be unable to meet this date and will lose out on the tax credit.

While there is no extension for the tax credit as of yet, there are those who believe that if many homeowners stand to lose out on the tax credit due to the inability to meet the June deadline thanks to hindrances in the housing market, Congress may extend the credit.  The first-time homebuyer credit is worth up to $8,000 and the repeat homebuyers credit is worth up to $6,500, both of which have been enough to entice more homebuyers to seek out a new home.

Anyone that may still be trying to use the homebuyer tax credit needs to make sure they do all they can to close by June 30th so that the tax credit can be claimed.  Hopefully, if circumstances show that many may miss this deadline there will be an extension, so check back with RWBpress for more information.