Federal Tax Credit “Deadline” Extended
Thursday, July 8th, 2010
President Obama signed an extension to the closing deadline for the Federal Tax Credit for Housing on July 4, 2010. The original legislative deadline called for all escrows opened on or before April 30, 2010 to be closed by June 30, 2010 in order to qualify for the Federal Tax Credit on the purchase of a new home. Because of the overwhelming response to The Homebuyer Assistance and Improvement Act of 2010, escrow companies, mortgage companies and banks were finding it very difficult to accommodate all purchasers. The new legislation approved by the President extends the closing requirement date to September 30, 2010.
It is important to note, the original date for entering into a binding purchase agreement has not changed. This extension only applies to those agreements entered on or before April 30, 2010. This extension allows those specific agreements until September 30, 2010 to close escrow and hence, provide the new home owner with the opportunity to claim the “up to $8,000 or $6,500 Federal Tax Credit”.
[...] contract with a home no later than April 30, 2010 and had to close by June 30, 2010 (Congress did extend the June 30 closing date to September 30 at the end of June). It is now very clear that this tax credit was successful in [...]