First Time Home Buyers Tax Credit Extension and Expansion for 2010?
Posted on | October 13, 2009 | 22 Comments
The first time home buyers tax credit extension has been an extremely popular topic on Subprime Blogger. Many visitors would like to see the tax credit extended and even expanded into 2010. If you are interested in helping please vote on the First Time Home Buyers Tax Credit Extension here at Subprime Blogger.
First Time Home Buyers Tax Credit Extension Poll.
Senator Johnny Isakson, R., Ga, is pushing a bill to extend and expand the current first time home buyers tax credit. The bill would raise the maximum amount to $15,000 extend the tax credit to ALL home buyers and eliminate the the income caps of $75,00o for an individual and $150,000 for a couple.
The current tax credit has helped to save over 1.2 million home buyers who entered the market since February of 2009. Of the 1.2 million home buyers, 350,000 wouldn’t have bought a home according to a study by the National Association of Realtors. The current tax credit is expected to expire on November 30th. This means that if you start the home buying process now you will not get the tax credit because the home must be closed on before the deadline. It would be nearly impossible to be able to close on a home by November 30th if you are just starting the home buying process.
Please make sure to return to Subprime Blogger for all your mortgage and financial news. To stay up to date on the current state of finances make sure to bookmark the current news category below. We offer information on everything from getting a lower mortgage rate to increasing your credit score.
Author: Jesse Wojdylo
Comments
22 Responses to “First Time Home Buyers Tax Credit Extension and Expansion for 2010?”
Leave a Reply
October 13th, 2009 @ 11:24 am
Hi i hope that they will extend the $8000 tax credit, i’m puting a contract on short sale house since may 26 2009, and still waiting for response, and now i’m afraid that we will get the answer after novembre 30th, and we loose the credit, i wish that they take on consideration the people who has a contract for long time, like my case and get the grant for this taxe benefits, since the time to close is not in our hands, we really really appriciate the extension, hopefully, thanks
October 13th, 2009 @ 2:21 pm
It is ridiculous to offer this tax credit to new construction homes. It should ONLY be available for the purchase of all these existing homes that are facing foreclosure!! Isn’t that the purpose of the tax credit? And not to line the pockets of the new homebuilders?
October 13th, 2009 @ 2:29 pm
The extension will be good for the country, the economy and first time home buyers…!
Let’s keep agood thing going and make it better!
Carlos
October 13th, 2009 @ 4:31 pm
I agree with Fatima. I too have a bid on a ‘short sale’ home. Its not like I started looking in October. The banks are so back-logged with paperwork, and short staffed, that it has taken a long time to even get a response from them. It will take nothing short of a miracle to be able to close by the Nov 30th deadline. I feel that they should extend the deadline for at least 6 mo. for the people who have outstanding bids on record who have been waiting, and 1 year for those who are serving in the military overseas.
October 13th, 2009 @ 6:13 pm
If there is a new tax credit available to all purchasers regardless of income, it would be a tragedy. Why would you want wealthy investors reaping the benefit of a credit? There should be income limits. They should be higher than the current limits. For instance, a single person making 89k who could financially handle a mortgage is currently excluded. However, someone who makes 900k should not have a tax credit–especially for purchasing a property for investment purposes only. Isakson’s proposal includes terms that certainly benefit the realtors who were his comrades years ago.
October 13th, 2009 @ 8:33 pm
“M”, it is not ridiculous to offer the credit to people who choose to build new homes. The purpose of the credit is stimulate the economy. When someone purchases a home that puts money into the economy. It doesn’t matter if it is a home they just built or a foreclosed home. In addition to the home they also purchase new furniture for the home, landscaping, etc. The purpose of the credit is not to get rid of the inventory of foreclosures, it’s to get the economy going.
October 14th, 2009 @ 5:38 am
I am praying desperately for the Extension as my husband and I are only finding short sales homes and haven’t found anything suitable yet
October 14th, 2009 @ 6:41 am
I am in agreement of the extension of the credit. My dilema is that I was leasing from a property mgmt. company and the property was foreclosed with my family in it. The new owner has agreed to a selling price to me, but I may miss the window of opportunity with the deadline looming and they can’t process it quick enough.
October 14th, 2009 @ 7:35 am
Im praying that they will extend it till june 2010 alot of people really could use it and im one of them!
October 14th, 2009 @ 7:35 am
I bought a home and got a closing date of December 7th. I will miss the tax credit by 1 week! that sucks because the close date is out of my hands!
October 14th, 2009 @ 9:07 am
I am trying to purchase a townhome, but is a short sale. My realtor said it could take up to 90 days, that means I will lose it.
Hope they will extend it
October 14th, 2009 @ 10:17 am
I’m in the process of trying to buy a short sale, and it’s looking like it won’t be in time for the tax credit. However, just because we were unable to close in time for this credit, it doesn’t make it unfair. As previously stated by Katie, the purpose of this tax credit is to stimulate the economy, not give payouts because we “need” them.
There might be a chance that they extend the credit, which could be a personal gain for us as individuals. Now as for the country’s health as a whole, it only harms us more. Our primary focus should be getting out of debt, not passing tax dollars back and forth between the citizens and government. Once the citizens and the government ALL learn to be big producers again instead of the world’s largest consumers, then our country will truly be on its way to a strengthened economy.
October 14th, 2009 @ 12:47 pm
I hope that the extension goes through. I am a disabled person on a fixed income. Yes, I hope they do extend the first time homebuyers tax credit, but I do not see why there is a need to remove the income restrictions. I feel like it is another way the rich are trying to get richer. I bring in about 2600/mo. Why would a person making 9k/mo need a tax credit. I wish I could bring in that much. Stop being greedy. That is what is killing America now. Live within your means and not within someone else’s or what you think you have to. Life should be about family not show and tell. I know I would be willing to sacrifice my 78 monte carlo for the sake of having a home. Would they be willing to give up their 45k+ car or 5k suit? Come on America, wake up!
October 14th, 2009 @ 7:19 pm
I hope they extend the tax credit. I am getting my loan through the USDA rural housing, which currently has a waiting time of 60 days. Even though I was supposed to close tomorrow, it just got extended to Dec. 15th.
October 15th, 2009 @ 7:50 am
Not that I’m happy to see that there are others in the same boat as myself/my husband but the above comments give me some type of comfort knowing that there are others just as frustrated as we are. We also have a contract on a short sale. We’ve been waiting for the house’s bank to give us the final letter of approval (which we need in order to apply for our mortgage and to set the closing date). Once we receive the letter from the bank, it’s going to take a minimum of 3-4 weeks to process the mortgage. So, basically we really don’t have much time if any to spare. Every few weeks we’re told by the bank that we should have the approval letter in another 1-2 weeks. It’s very frustrating. Our hands are tied. We really need a miracle…
October 15th, 2009 @ 11:39 am
I too want Congress to pass the extension on the tax credit, though I am happy with the terms they are currently offering. We have been putting a lot of money aside in reducing our debt we owe to improve our credit scores so we can in turn qualify for a home mortgage. All this takes time and since it is nearing the end, it doesn’t look like we will make it. If this credit was extended 1 year then we could have more time and find the right home for our family’s needs. Our family has rented now almaost 8 years and I think now is the best time to make a home purchase, prices are down and inventory is high. We need a miracle to get this extension passed.
October 15th, 2009 @ 12:33 pm
Part of me wants the credit to be extended so someone will buy my house but the other part of me isn’t sure whether it is really doing the good it is set out to. I know people who don’t have money, can’t save money, and are trying to buy a house. To me it just seems that people are abusing the tax credit. Also, I feel that a year has been plenty of time for people to purchase. I do take pity for the bank owned homes that are taking longer to get approval on and feel that some leniency should be given for those situations but I don’t feel it is fair to not first time buyers to continue to give first time buyers money but no one else.
October 15th, 2009 @ 12:36 pm
My wife and I just returned to the states after being stationed overseas for the last 7 years. We didn’t even know about the tax credit until we started looking for a home to purchase for the first time in 22 years in the service and our 17 years of marriage. This is the first time we’ve been in a position financially and geographically to purchase a home. We started looking at houses as soon as we arrived at our new base. Settling for a house in time to get the tax credit is not a driving factor for us but it would be nice if it was possible. From what I’m hearing, there is no way we could have gotten given our timeframe, anyway. If extending the deadline helps the economy more, I’m all for it. Thanks!
October 15th, 2009 @ 1:11 pm
we need the tax credit extended. we put a down payment and signed contract in on a short sale at the beginning of may 2009. we have yet to hear back from the bank. they say possibly by 10/24 which will be too late to meet the 11/30/09 deadline. it will be 6 months by the time they come back with an answer and at least another 30-45 days to close.
October 15th, 2009 @ 2:25 pm
I too am playing the “waiting game” with the Bank on a short sale I put an offer on in late April. By extending the Tax Credit for just 6 more months, I trust I can close and be moved in. I feel that the folks in Washington should really take a close look at how the banks are operating with these short sales. There seems to be no integrity or concern for people’s lives (both those in short sale and those wanting to buy the short sale). Very frustrating for all of us involved.
October 15th, 2009 @ 4:45 pm
PLEASE EXTEND AND EXPAND THE TAX CREDIT TO ALL (LIVE-IN BUYERS) SINCE JAN. 09. AND IF POSSIBLE INCREASE IT TO $15,000.
My husband and I bought a our 2nd house early this year – we needed to upgrade due to a growing family – we are professional and work in decent jobs, (I even have a part time job); and that isn’t enough, we still live pay check to paycheck even thou we are not big spenders. Our salaries have been frozen, cost of living keep going up, and no bailout for middle/lower class individuals that are trying to get a head. EXTENDING AND EXPANDING THE TAX CREDIT WOULD HELP SOME.
October 16th, 2009 @ 11:53 pm
[...] Full story is available on Subprime Blogger [...]