Many homebuyers were worried they would miss the deadline to qualify for either the first-time homebuyer or repeat homebuyer tax credit. The original deadlines to close on a home and take advantage of either of these tax credits was June 30. However, many homeowners were unable to meet this deadline as the timeline for closing on a home can vary and draw out for a long period of time.
Yet, homebuyers are now able to take advantage of the tax credit as long as they close on their home by September 30. This legislation was passed to the delight of many homeowners who stood to lose out on this tax credit, which for some, was a driving force for them to purchase a home.
Homebuyers were able to take advantage of low mortgage interest rates, low home prices, and a homebuyer tax credit, which increased the sales of homes over the past few months. The original deadline to be under contract on a new home was April 30 and many people felt that only giving homebuyers two months to close might have been too short of a timeframe and difficult for some to meet, and it appears those people were right.
While a home sale can be closed in a matter of weeks, there are some cases which require a much longer period of time and it was reported that thousands of homebuyers were going to lose out on this tax credit had the date not been extended. Luckily, homebuyers who want to take advantage of either the first-time home buyer tax credit for $8000 or homebuyers who want to take advantage of the repeat homebuyer tax credit for $6500 are now able to do so as long as they close by the new deadline of September 30.