The deadline to take advantage of the first time home buyer tax credit is approaching quickly. In my previous post  I mentioned that the NAR (National Association of Realtors) was lobbying Congress to extend the program. As it stands any purchase transaction must close by the 30th of November to take advantage of the tax credit.

In the past week U.S. Senate leaders have moved closer to extending and amending the current tax credit. While the bill is still being worked on the current state of the bill that was headlined in Bloomberg news would be slightly lower than the present $8,000 tax credit in place. It would be reduced to $7,290 and would be in effect for home purchases that are under contract prior to April 30th and homebuyers would have an additional sixty days to close.

The income eligibility would remain the same $75,000 for individuals and $150,000 for couples. The current version of the bill would also allow for step-up buyers and not just first time homebuyers.

In the past several months sales of existing homes have increased mainly in fact to the expiration of the first time home buyer tax credit. LoanClassroom is committed to keeping you up to date on this matter as it materializes.