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Reports have been on-going regarding home buyers concerned that they won't be able to close in time to take advantage of the tax credit for new home buyers slated to expire today, June 30. Help may be on the way for the stressed and financially strapped home buyer. Last night, the House of Representatives voted 409-5 on the home buyer tax credit extension 2010, slated to last until September 30.
The Senate has now joined the effort on the tax credit extension. According to HousingWire, Senators Harry Reid (D-NV) and Max Baucus (D-MT) have introduced the Senate version of the bill. "[W]e're trying to extend the closing deadline for home buyers in Nevada and across the country who have already qualified for the first-time home buyer tax credit and need some extra time to close on their new home and experience the American Dream of homeownership," Reid said in a statement. Nevada was one of the states hit hardest by the collapse of the housing market.
A Senate statement says the tax credit extension bill will cost approximately $140 million over 10 years. The Senate version of the credit is being attached to the jobless benefits extension bill discussed in a previous post.
According to Reuters, the Commerce Department said on Wednesday single-family home sales fell to a 300,000 unit annual rate, the lowest level since the series started in 1963.
Currently, the tax credit is $8,000 for first time home buyers and $6,500 for repeat buyers. The extension of the deadline only applies to closings. The credit is only applicable to those who signed purchase agreements by April 30.