President Obama signed the Worker, Homeownership, and Business Assistance Act of 2009. The act extended the tax credit for first time homebuyers for contracts written before May 1, 2010. The sale must fund prior to July 1, 2010. The act also expanded the tax credit for existing homeowners who have owned and occupied their primary residence for at least 5 of the last 8 years. Surprisingly this expansion is effective at time of enactment which is today November 6, 2009. That’s a real nice surprise for anybody who is closing in the month of November and fits into that category!
Below are two helpful resources for further detail of the act:
The digital/internet press is heating up as we close in on the November 30th deadline to close a purchase and qualify for the FTHB tax credit. In the office we’re slammed with purchase transactions that are heading for a mid-November closing and we couldn’t be more blessed. However, there are still a good portion of our qualified borrowers who have yet to find a home. We’ve heard both positive and negative news recently regarding an potential extension of the tax credit.
Yesterday I read the article, “Washington Report: $8,000 Home Buyer Tax Credit” which stated that President Obama, House speaker Nancy Pelosi and Senate majority leader Harry Reid met this past week to discuss a possible extension for military personnel serving overseas and that Reid is in support of a full extension and possible expansion of the tax credit.
Today I read an article, “Push on to expand $8,000 tax credit” from cnnmoney.com stating again that congress is considering an extension of the tax credit.
The tax credit is costly. There are definite pros and cons for extending the credit. Bottom line, we’re still seeing a rise in unemployment which results in increased mortgage defaults. If the tax credit can help qualified buyers move towards homeownership we will all benefit from having the inventory of foreclosed homes shrink in 2010.
Dealing with life after Taylor, Bean and Whitaker… Be prepared to time your closings accordingly. The closure of the nation’s largest FHA lender has had an effect on the entire wholesale mortgage market. Check out the video below:
