Home Tax Credits: Date For Closing Extended

July 1st, 2010 - 7:34 pm ICT by GD  

By Meena Kar
us-capitalJuly 1, (THAINDIAN NEWS) The US Congress has approved a bill on Wednesday that will extend the closing deadlines for home-buyers who have been trying to take advantage of the popular tax credit. Contracts with signing by April 30 will now have till September 30 to complete the purchases and still be eligible for the home tax credit. The date was earlier fixed on June 30.

The three month extension will help a lot of Americans who failed to go to closing by June 30. The $8000 tax credit for first time buyers and $6500 for the buyers of a new primary property was one of the initiatives taken by President Barack Obama to revive the home sales market during the economic recession. Senate Majority Leader Harry Reid said in a statement that apart from allowing the public to live the American dream, the popular program provides a much needed boost to the Nevada economy and housing market. Nevada has the highest foreclosure rate at the moment and Harry Reid is facing a very tough re-election campaign.

Some financial experts have also called the move beneficial for those who needed just a little more time to close their loans. The 3 months extension for the people who have signed the contract after April 30 will also allow the buyers to be eligible for the home tax credit and therefore boost the home-sales market. Over 1,80,000 home buyers would have otherwise missed the deadline if it was not extended. The House of Representatives have approved the bill and it will be sent to President Barack Obama for his signature. The proposal was approved by a 60-37 vote and has an estimated cost of $140 million.

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