The home buyer tax credit for first-time home buyers and repeat home buyers has been extended until September 30, 2010 in order to assist home buyers who were unlikely to meet the June 30 deadline to close on their home. Various mortgage and housing problems caused delays for some homeowners and there were reports that thousands were going to be disqualified from taking advantage of either the first-time home buyer or repeat home buyer credit if there was no extension.
However, this extension until September 30 is believed to be of help to home buyers who had qualified for the extension by being under contract in April, by now simply giving home buyers more time to close on their home before this extension of the deadline is met.
The first-time home buyer and repeat home buyer tax credit are both credited for an increase in the number of home sales earlier in the year. Many homeowners jumped into the housing market thanks to this tax credit, along with many other factors like low mortgage interest rates and affordable home prices.
With many having uncertainty in their financial life, it was seen that buying a home with this tax credit as an incentive may have been a leap of faith for some who believe that they will be able to afford their new home, and for this reason, the deadline to close on a home was extended so that these homeowners who were relying on this tax credit did not miss out despite doing all they can to meet the deadlines.
There have been pessimists who feel the homebuyer tax credit program is doomed to fail, but it’s hoped that as the economy slowly improves and more is being done to combat unemployment, that these new homeowners will be able to take advantage of this tax credit, move into their new home, and avoid any more mortgage troubles in the future.