The first-time home buyer tax credit and repeat home buyer tax credit were extended due to the fact that many potential homeowners who had signed a contract for a home by the deadline of April 30 were unable to meet the June 30 deadline to close on their home. Various mortgage difficulties prevented homeowners from closing on a new home and many first-time and repeat home buyers were set to miss the tax credit.
Home buyers who qualified for the first-time home buyer tax credit were able to take advantage of the tax credit that is worth up to $8000. Repeat home buyers, on the other hand, may qualify for a tax credit worth up to $6500. With mortgage interest rates at an affordable level and home prices low as well, many homeowners jumped into the housing market due to the affordability of buying a home when these incentives were factored in.
Now, home buyers now have until September 30 to take take advantage of either of these tax credits if they had met the April 30th deadline initially. While the housing market is still having trouble and home prices are at a level that many consider to be quite low, homebuyers you can take advantage of the current mortgage situation in our nation and get an affordable home.
Again, a home buyer must close on their home by September 30 in order to take advantage of either the first-time home buyer tax credit or a repeat home buyer tax credit on their new home. While many struggled to meet the previous closing date, it seems that an extension into September will allow the majority, if not all, of the homeowners who qualify for a first-time or repeat home buyer tax credit to close on their home and claim this tax incentive.