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gmakerley

November 30 is the final date for first time homebuyers to close on their purchases and qualify for the $8000 tax credit we've been talking about all year. If you are a buyer who is just hitting the streets now to look for homes, it's a question that is undoubtedly bubbling up.

We've found that the whole process of looking for a house, going through the contract negotiations, then the loan application and approval process can easily take 60 days. And when things go awry, that time span can definitely increase.

Right now the National Association of Realtors and the National Association of Home Builders are lobbying like mad to try to convince Congress to extend the credit. Their stance is that housing sales have such a great impact on our national economy that there is a definite need for stimulating that market. And, of course, what better stimulus than a tax credit.

Congress, on summer hiatus at this time, has already begun to act. There are bills already in the works in both houses of Congress, to extend the tax credit for another year. Some have even proposed increasing the amount of the credit to as high as $15000.

The key here is that there is so much on Congress' plate that there is no assurance that these pieces of legislation can be reviewed before November 30.

There seems to be a growing consensus, however, that the politics of the moment will rule, and that the credit will eventually get extended. Will it be increased? Let's not count on that. Will it be expanded to include those who've already owned homes? Let's not count on that, either. But things are looking at least a bit positive for extension.

BrianDelaCruz · Posted: Wed Aug 26, 2009 8:32 pm Post subject:

Hi George,

The first time homebuyers tax credit has been of great help to a large number of people. It has encouraged a lot of people to purchase property even in this period of recession. I'm not thinking about expansion of the tax credit but if it gets extented for about 6 months or a year, it would ultimately help a lot of people. But again, I agree with you that there's no assurance on behalf of the Congress that it would get extended before the deadline - November 30th, 2009.

Just check out my blog post on the same topic at:
http://www.mortgagefit.com/blog/taxcredit-extended/

Thanks,

Brian Dela Cruz

jenkin7 · Posted: Thu Aug 27, 2009 2:48 am Post subject:

Hi all,

I've also heard of the possibility of an extension of the tax credit. But I'm not sure how quickly this extension will come into effect. The credit has undoubtedly helped a lot of people to buy their dream home. An extension will surely be welcome by people who have not been able to take advantage of this credit so far.

The mortgage and real estate industries need a boost at present. The demand for homes and home loans needs to be increased to revive the industries and the economy. If the tax credit is extended through the next year, it will no doubt encourage thousands of people to purchase their homes and this will raise the demand for home mortgages.

Jessica · Posted: Thu Aug 27, 2009 4:18 am Post subject: tax credit extension/expansion

Hi,

It is true that lawmakers and real estate industry experts are trying hard to bring about an extension of the first time buyer tax credit. They're even expecting a raise in the tax credit limit upto $15,000. Industry experts also want the credit to be expanded to all buyers and not just the first time buyers. But at this time, when the federal budget deficit has climbed up to record highs ($1.27 trillion in July with only 2 months left for the end of the budget year), it leaves us with a lot of doubt as to whether the tax credit limit will be raised. However, we can still hope for the extension of the credit.

Regards,

Jessica

Guest

Can someone post an opinion of how likely it would be for the income requirement on the tax credit bill to be removed or increased?

gmakerley · Posted: Thu Aug 27, 2009 6:09 am Post subject:

SD, i think you have been able to discern from the above posts that there is no way to predict the likelihood of the proposed bills being adopted to begin with, let alone how the income limitations will be established in the event of passage.

i dare say you probably won't get any better response from your congressional representatives, either.

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Possibility of extension on tax credit