Home buyers who have been looking to take advantage of the first-time home buyer or repeat home buyers tax credit may get an extension on the deadline for which they must close on their home. Many people believe that the current deadline of June 30 is unreasonable seeing as how closing on a home is not something that is consistent for homeowners in all parts of the nation.
Some home buyers are able to close on their home in only a few weeks while it may take others a much longer period of time. There are estimations that thousands of homeowners might miss out on this tax credit if the deadline is not extended due to the fact that there has not been enough time given between the homeowner requirement to be under contract and to close on their home.
Many people jumped into the housing market due to low home prices, low mortgage rates, and the incentive of a tax credit that can help them recoup some of the costs that come with closing on a home. While it may be unlikely that many homeowners would suffer if they lost this tax credit, there is a need for an extension on the first-time home buyer and repeat home buyer tax credit simply because of the vast amount of homeowners who may be disqualified from claiming this credit if the deadline stays at June 30.
Congress has been pushing for an extension and there are many who believe that there will be action taken to extend the deadline to September, possibly, but there has been nothing certain as of yet. However, the consensus is that the tax credit will be extended so homebuyers who may worry that they are going to miss the deadline might see an extension in the coming weeks. While this is not a guarantee, there are few people who believe that this legislation will not be passed.
However, it will still benefit homebuyers to do all they can to make sure they have all the necessary work done so that they can close on the home in a timely manner. Again, this extension is not guaranteed so homeowners that may be able to meet a June 30 deadline may want to alter their plans so that they can be certain to qualify for the tax credit in case there is no extension.