Extension of the home buyers tax credit was iffy, with it looking uncertain up until the final days before the credit was due to expire. Many buyers and sellers were sitting by nervously, with lender backlogs and other complications preventing them from making it to the closing table in time for the credit. Approximately 6,400 home buyers in Michigan alone would have been negatively impacted if the tax credit extension had not been passed.
Senate and House vote to extend tax credit to home buyersThe Senate and House have approved a plan to give home buyers an extra three months to finish qualifying for federal tax incentives that boosted home sales this spring. It still has to be signed by the President. The consensus is that he will sign it today.
The move by Senate Majority Leader Harry Reid (D-Nev.) would give buyers until Sept. 30 to complete their purchases and qualify for tax credits of up to $8,000. Under the current terms, buyers had until April 30 to get a signed sales contract and until June 30 to close the sale.
The proposal would only allow people who have signed contracts to finish later. About 180,000 homebuyers who already signed purchase agreements would otherwise miss the deadline.