Housing Complex

Congress May Pass New Homebuyer Tax Credit This Week

Two sources—the New York Times and Reuters—are reporting that Congress will likely be renewing the first-time homebuyer tax credit in the next few days. "After weeks of partisan bickering, the Senate voted 97 to 1 to clear a procedural hurdle and move to final passage on Wednesday or Thursday. The House of Representatives is expected to approve it quickly and send it to President Barack Obama to sign into law," according to Reuters.

The original credit was set to expire on Nov. 30. Last week, we learned that the new version of the credit will extend to some current homeowners looking for their next purchase, and that it would apply to all contracts entered by the end of April, and closing before July 1 (via Wall Street Journal).

  • Michael

    What happens if you close between passage of the law and November 30th? Which version of the Tax Credit would you be eligible for?

    Thank you for the information.

  • http://www.RealEstateConsumerNews.com Dennis Norman

    Tax Credit Update - Senate voted 9701 today shortly after noon to end debate on H.R. 3548 (The Unemployment Compensation Extension Act of 2009) which contains the amendment extending and expanding the tax credit....Next step is for the Senate to vote on passage of the bill with the amendment...this may happen tomorrow night or Friday...I have complete info in a post at

    http://realestateconsumernews.com/financing/home-buyer-tax-credit-extension-update/

  • David

    Good question Michael. I would like to know. I just close on October 30th and the old version restricted income at 75K and I earn above that. The new version though expands that to 125K and for that I qualify. Would really like to know and would hope I didnt miss it by 6 days.

  • David

    I also know the orginal tax credit allowed people to file retoactively their 2008 returns to get it so hopefully the new one does the same, or at least covers a few weeks or months previous.

  • David

    Got your answer and it is good news. It retro back to Dec 1 2009
    The compromise would extend the existing credit and create a new $6,500 credit for move-up buyers. Both types of buyers must sign a binding contract to purchase a new or existing primary residence between December 1, 2009 and April 30, 2010. Buyers would have until June 30 to close the deal.

    Read more: http://www.sfgate.com/cgi-bin/blogs/pender/detail?entry_id=50578&tsp=1#ixzz0W0ePGtNT

  • http://www.RealEstateConsumerNews.com Dennis Norman

    Homebuyer Tax Credit Update: The House of Representatives just passed the bill by a vote of 403 to 12. It is now headed to the President for his signature..he is expected to sign today or tomorrow which then puts the extension and expansion of the tax credit into law. I have complete details as well as links to the bill in a post at:

    http://realestateconsumernews.com/financing/home-buyer-tax-credit-extension-update-house-passes-bill-on-to-president-for-approval/

  • ahhh

    but what about people who did not qualify for the credit before but now do - but closed before Nov 6?? We closed yesterday!!! did we really miss it?

  • Ruth Samuelson

    Uh, yes, I think you did. This is from the National Association of Realtors' website: [the legislation] expands the credit to grant a $6,500 credit to current home owners purchasing a new or existing home between November 6, 2009 and April 30, 2010.

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  • M

    David, Dec.1 2009 is not retroactive to the present, unless you somehow are posting from the future???? In any event, the statement you refer to in your link is incorrect, the new tax $6500 tax credit for eligible move-up buyers is available ONLY to buyers who close on their purchase AFTER Nov. 6, 2009, the effective date of the new law. As for the increased income limits ($125,000 for individuals/$225,000 for joint filers) they, too, only apply to buyers who close on their purchase AFTER Nov. 6.

    So,If you already have closed on your purchase before today, you are stuck with the original income limitations.

    If you close after today, you can utilize the new income limitations.

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