Tax Credit Extended

As many of you have been reading, Congress, thanks in large part to Senate Majority Leader Harry Reid, has just approved an extension of the Federal Tax Credit by 90 days.

Lets be absolutely sure that you understand what this means. The tax credit was designed as an incentive for first time buyers to purchase a home by giving them an $8,000 tax credit when they closed. The incentive was set to end on June 30; however, with only two weeks left there are approximately 180,000 home buyers that are in contract and waiting to close. If the extension had not been granted most of these people would have lost the ability to take advantage of the incentive.

Where there seems to be a bit of confusion is that the extension is not for people that have not yet purchased a home, it is simply an extension for those waiting to close. The mortgage process has slowed down since the meltdown of the banks in 2008 and this is affecting the time line thus causing Congress to have no choice but to extend the deadline....thank you Harry Reid!!!