Many buyers were anxious to find the perfect home in time to close escrow by November 30, 2009 so that they could take advantage of the $8000 (or 10% which ever was less) tax credit being offered to first time home buyers.
I know a few of my buyers worked hard to get approved for a loan, only to find that the homes they had an interest in were flying off the shelves because they were priced well and the market is improving.
Today our President signed the bill that not only extends unemployment but also the First Time Home Buyer’s TAX credit. There are also revisions that may make a few other buyers very happy. First of all, the income qualifications have increased, the time has extended and this is not a loan. Keep in mind it is a TAX CREDIT though.
There is another credit that was included in the bill today and that credit is a little tougher for buyers to fall into place but if you do there could be up to $6,500 in a credit for you. The basic to qualify is you have to have owned a home for 5 consecutive years of the last 8 years. You have to be in escrow between today November 7, 2009 and April 30, 2010, but you can close escrow as late as June 30, 2010. My guess is there will be a lot of confusion over this I would strongly suggest talking to your tax advisor and checking the IRS website at www.irs.gov as this progresses.