$8000 Tax Credit Extension Deadline Looms for DFW

As the government squabbles to extend the deadline for buyers to close on their homes and claim the tax credit, anxious first time buyers are hoping they get something accomplished so they don’t miss out on their $8000.  I don’t blame them.  $8000 is a big chunk of change to ANYONE (ok maybe not Bill Gates).  But for the rest of us, that type of money can make a big difference on your annual income.

As of today, to receive the tax credit for first time home buyers, you would need to meet two guidelines in regard to time.  First of all, you had to have your initial contract signed by the end of month in April, and you have to actually close on the transaction by the end of June.  Sounds simple enough, right?

Well, the problem arose when (just like always) people drug their feet and waited until the last minute to find a house or get a home loan.  Consequently, a bevy of loans went to the lenders, and due to the high volume they couldn’t close them in time.  Next thing you know, it is the end of June and literally thousands of loans are in danger of not closing in time.  You would think that there would be a contingency plan in place for just this type of situation, but unfortunately that’s not the case.

Meanwhile, on Wednesday, the Senate approved a three-month extension,which would give buyers until Sept. 30 to close, but it’s attached to another bill which has yet to be passed by the House.  The fact that the House may be in the process of a filibuster doesn’t help one bit.

According to the National Association of Realtors, as many as 180,000 buyers who were hoping to close by the end of June are more than likely to miss the deadline.  Ouch.  Rumors are swirling that if it takes a month to pass the extension home buyers would be able to apply for the credit after the fact, but this has neither been confirmed or denied as of yet.  So keep your fingers crossed, and we will let you all know as soon as we hear anything about it.

If you have questions about the tax credit (or getting a home loan in general) please don’t hesitate to CONTACT US and we will get back to you as soon as possible.  You can also fill out this LOAN OFFICER CONTACT FORM and one of our representatives will review your situation and see if we can help you out. 

2 Comments for this entry

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  income tax calculator

  August 1st, 2010 on 7:30 am

  do u have a twitter
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  Mortgage Mike - Admin

  August 2nd, 2010 on 10:52 am

  Yes, my twitter account is located here: http://twitter.com/DFWMortgageMike.