By Gregory Hurley Published June 10, 2010 Credit Unions Online
Senator Harry Reid, D-NV, wants home buyers to have until September 30, 2010 to complete home sales to qualify for the home buyer tax credit. The catch? Only home buyers who entered into a signed sales contract by April 30, 2010 will qualify for the extension. Senators Johnny Isakson, R-GA, and Christopher Dodd, D-CT, are joining Senator Reid in support of the amendment.
The National Association of Realtors is pushing hard for this as well. Pending home sales surged in April as the tax credit deadline approached. This surge has created a rush of business for mortgage lenders, as well as title companies, inspectors, and everyone else involved in the closing of a home purchase
First-time home buyers are eligible for an $8,000 tax credit, while current owners "trading up" qualify for a $6,500 tax credit. If the extension does not pass, anyone not closing by June 30, 2010 will become ineligible for the tax credit.
See related article Homebuyer Tax Credit Extended Through September.