Will the Obama 8000 First Time Home Buyer Tax Credit Be Extended?

Many people want to know if the existing Obama $8000 first time home buyer tax credit that expires on December 1st, 2009 will be extended. This is a good question. As of today, there is just under 60 days left to…

• look for;
• put in an offer on;
• negotiate and have the offer accepted on;
• qualify for a loan for;
• make sure you have enough money for down payment and closing costs for;
• get an inspection on;
• appraise the value of;
• process, underwrite and produce loan documents for;
• sign documents at title (attorney’s office) for;
• make sure the loan funds;
• and have the note and deed recorded properly for

your house. This process can easily take over 60 days.

As it stands, if this does not happen by November 30th, you will not get the tax credit. If you are still trying to take advantage of the existing $8000 first time home buyer tax credit, the time to act is now.  (Additional Information on the Obama 8000 First Time Home Buyer Tax Credit)

Here is the good news! There are a five bills that have been introduced to Congress to extend the first time home buyer tax credit.

S. 1230: Home Buyer Tax Credit Act of 2009 — introduced on June 10th, 2009. This Act proposes to replace the current tax credit for first-time homebuyers with a one-time credit for 10% of the purchase price of a principal residence, up to $15,000. Requires repayment of credit amounts if the taxpayer sells or fails to occupy the residence within 24 months after the date of purchase.

*** Status Update: As of October 3rd, 2009 S. 1230 was still in “Referred to Committee” status ***

H.R. 2801: Home Ownership Moves the Economy (HOME) Act of 2009 — introduced on June 10th, 2009. This Act proposes the following:

• extend the first-time homebuyer tax credit to all individuals who purchase a principal residence (currently, only first-time homebuyers as so defined);
• extend the credit and the waiver of recapture requirements for such credit through 2010 (expiration would be moved to January 1st, 2011);
• and repeal the limitation on the credit based on modified adjusted gross income.

*** Status Update: As of October 3rd, 2009 H.R. 2801 was still in “Referred to Committee” status ***

H.R. 2606: Home Buying Credit Expansion Act – introduced on May 21st, 2009. This Act proposes the following:

• extend the first-time homebuyer tax credit to all individuals who purchase a principal residence (currently, only first-time homebuyers as so defined);
• extend the credit and the waiver of recapture requirements for such credit through 2010 (expiration would be moved to January 1st, 2011).
• and expand the election to treat a purchase of a principal residence as made in a prior taxable year for purposes of such credit.

*** Status Update: As of October 3rd, 2009 H.R. 2606 as still in “Referred to Committee” status ***

H.R. 2619: To amend the Internal Revenue Code of 1986 to temporarily expand the credit for first-time… – introduced on May 21st, 2009. This Act proposes the following:

• to allow until June 30, 2010 a first-time homebuyer tax credit for all purchasers of a principal residence (not just first-time homebuyers);
• and provide a refundable tax credit, up to $3,000, for the costs of refinancing a principal residence.

*** Status Update: As of October 3rd, 2009 H.R. 2619 as still in “Referred to Committee” status ***

H.R. 2655: To amend the Internal Revenue Code of 1986 to expand and extend the first-time homebuyer credit – introduced on June 2nd, 2009. This Act proposes the following:

• extend the first-time homebuyer tax credit to all individuals who purchase a principal residence (currently, only first-time homebuyers as so defined);
• extend such credit and the waiver of recapture requirements for such credit through 2010;
• and expand the election to treat a purchase of a principal residence as made in a prior taxable year for purposes of such credit.

*** Status Update: As of October 3rd, 2009 H.R. 2655 as still in “Referred to Committee” status ***

On September 8th, Congress reconvened.  We will see if any of these (or a hybrid version of some/all of them) will pass.

Here is the bad news! There is less than 60 days for Congress to extend the first time home buyer tax credit and there are major issues (i.e. healthcare) that may take priority and push the tax credit to the side.

For now, we can either wait and see if the intense lobbying by groups such as the National Association of REALTORS® and National Association of Home Builders can sway our lawmakers to believe that this is a priority item or we can contact our local senator or representatives’ offices and tell them ourselves.

Senate Look-up
Representative Look-up

If you are a first time home buyer and you want to ensure that you can take advantage of the current $8000 first time home buyer tax credit, you must act now. As a reminder, the available FHA financing options are tailor-made for first time homebuyers. If you are thinking of buying a home and have more questions, please contact me at any time.

Steve Lines
FHA Mortgage Specialist
Cell: 480-329-3346
email: slines@bestFHAlender.com
www.bestFHAlender.com
http://twitter.com/stevelines

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