There has been much lamentation over the impending stop of the $8,000 first time home buyer tax credit. The tax credit is a stimulus incentive that was set to expire on December 1 2009.
The tax credit allowed first time home buyers acquiring their primary residence with a florida mortgage lender to receive a tax credit of up to $8,000. With the end of the program many feared that purchase sales would drop and a market recovery would be greater delayed.
First notes are that the Senate has not only passed an extension of the first time home buyer tax credit, but an increase that would encourage current home owners to also be qualified for a tax credit on a new home purchase as well even using Florida Hard Money Lender!
Sources within the Senate have leeked that there is a preliminary agreement to extend the so called “first time home buyer tax credit” until the end of April 2010. In addition they likely will expand the program to include a tax credit of up to $6,500 for house purchasers that already own a home. The senate sources hintedthat one stipulation on current homeowners looking to acquire a new home and get the $6,500 credit is that they must have lived in their owner occupied residence for the last five years.
It appears they will try to attach this new home buyer tax credit extension to the unemployment extension bill. It’s still unclear as to when the extension will be up for a vote, but this first report is incredibly positive news for the housing market.
Many families have already been able to purchase a owner occupied home and take advantage of the first time home buyer tax credit. This five month extension and expansion will allow numerous thousands more to benefit from it as well.
One point of trouble for many potential owners is not being able to use the tax credit early and use it as part of the down payment on their acquisition. While HUD has allowed the use of the tax credit as down payment, mortgage companies as we have seen all too often, have not gotten on board with it and mostly not allow the use of the tax credit for down payment. Third parties had been advancing borrowers loans to use as down payment in some reported cases. This is still not widely accepted by mortgage lenders and borrowers have had to wait until tax time to receive their credit.
If you have been in the time frame to buy a home it looks like you will have until the end of April to get a Government check to do so!
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