First Time Home Buyer Tax Credit Extension

How important is the First Time Home Buyer Tax Credit to your purchase of a home? The deadline for closing to qualify for the credit is nearing - November 30 2009 - if not, imminent considering how long it takes to close a transaction once contracts are accepted. Inventory is depleting, prices are rising and finding the right house is getting difficult plus many first time buyers are stuck in Never-Never-Land waiting for Short Sale and REO Lenders to process submission and offers made.

Take heart in that Congress is considering an extension of the first time home buyer credit. Some in Congress are even proposing to increase the credit from $8,000 to $15,000 plus they want it to apply to anyone who buys a home. Extension and/or amendment to the credit seems likely as there are a number of House bills being proposed to do so. Each bill carries a slightly different twist beyond mere extension.

Numerous proposals and ideas to continue to spur the housing market have emerged:

A Senate bill submitted by Sen. Johnny Isakson, R-Ga., and co-sponsored by Senate Banking Committee Chairman Chris Dodd, D-Conn., proposes raising the credit to $15,000 for any home buyer with no income limitation.

Rep. Kenny Marchant, R-Texas, last month submitted a House bill that would extend the current $8,000 credit for first-time home buyers through June 2010 and would also provide a $3,000 tax credit to current homeowners who refinance.

Rep. Eddie Bernice Johnson, D-Texas, introduced a bill that would extend the $8,000 credit to 2010 and now include ALL home buyers.

The Business Roundtable, a separate group composed of CEOs from large companies, earlier this month asked Congress to raise the credit to $15,000 and make it available to all home buyers.

The National Association of Realtors wants to expand the tax credit to $15,000, and it wants to allow all buyers to be able to qualify, not just those who have been out of the market for three years, according to The New York Times.

There was talk of a bill by Isakson to introduce a bill that would provide up to a $15,000 tax credit to any buyer who stays in their newly purchased home for a minimum of two years, according to the Times.

However, the most recent introduction is from Maryland Democrat Sen. Benjamin Cardin introduced S.B. 1678, and it is co-sponsored by senators John Ensign (R-Nev.), Johnny Isakson (R-Ga.), Senate majority leader Harry Reid (D-Nev.) and Debbie Stabenow (D-Migh.)… The bill wouldn't change anything on the tax credit except the expiration date.

Realogy Corporation, a global provider of real estate and relocation services, announced its support of a bi-partisan Senate bill (S. 1678) Read more: http://rismedia.com/2009-09-20/realogy-supports-new-bi-partisan-senate-bill-to-extend-first-time-homebuyer-tax-credit-for-6-months/#ixzz0RkwiHHWw Keep the faith!