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Homebuyer tax credit deadline is Sept. 30

By Kay Bell · Bankrate.com
Thursday, July 1, 2010
Posted: 9 am ET

If you were struggling to close on the purchase of a home so you could get an $8,000 tax break, thank the housing gods or whatever deity you follow.

You now have three more months to close on your new home.

At the literal eleventh hour last night, the Senate signed off on a measure extending the first-time homebuyer tax credit's  settlement deadline until Sept. 30. Since the eventual bill that was approved is identical to the House measure passed on Tuesday, it is now on its way to the president to be signed into law.

While this bill gives buyers who were frantically trying to get the paperwork finalized yesterday some breathing room, it remains a very specific tax break.

Yes, eligible home purchasers now have until Sept. 30 to finalize the closing of their home. And yes, the potential $8,000 credit for first-time buyers or $6,500 maximum credit for repeat buyers remains.

But to be eligible for the extra time, you must have had a valid contract for the home you're buying in force on April 30. Folks looking to buy a new place now are out of tax credit luck.

For those of you who are eligible, though, take a breath. Relax. You've finally got time to get into your new place and get a tax credit, too.

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2 Comments
Elizabeth
July 02, 2010 at 1:53 am

Is this a one in a million case or are many buyers facing the same situation my sister has? She has a contract with Bank of America on a short sale home in Florida since the beginning of the year. It took them around 45 days to give the first response. They finally responded with a higher price and a closing date for August probably believing that this would be beyond the tax credit deadline. HA!! She gave her counter offer for June 28 and she's still waiting for a response other than, "It's on a supervisor's desk."

Is it possible that there will be a lawsuit against some of these wonderful banks for stalling?

Levi
July 02, 2010 at 12:47 am

Question...

Does this credit apply to Homebuilders too? My mother is building a home and paying cash for it....she had the contract to build way before April 30th, but hasn't finished the house yet. Will she qualify for the new tax credit if she can get a certificate of occupancy before Sept. 30th? Or does this extension only apply to those financing?

Thanks,
Levi