Obama Signs First Time Home Buyer Extension

Not too long ago we brought up the possibility of a first time home buyer tax credit extension. Well, we’re no longer seeing a possibility, because the extension has become a reality. It’s a great thing for the real estate industry, as well as first time home buyers1

The new deadline for the first time homebuyer tax credit is April 30, 2010, which gives buyers, and sellers, plenty of time to boost the market even more.

The bill will expand the homebuyer tax credit to more families, phasing out for individuals with income above $125,000 and for joint filers with income about $225,000 (the current law credit phases out for individuals with income starting at $75,000 and for joint filers with income starting at $150,000). It also creates a $6,500 credit available to homebuyers who have been in their current residence for five or more consecutive years out of the last eight years. – Maryland RealEstateRama.com

For everyone who is taking advantage of the extended first time home buyer tax credit, it’s important to remember that no matter when you purchase your first home you must file for the tax credit with you 2009 taxes. Speak to your financial counselor or tax man to find out exactly how to do this and claim your credit return.

When President Obama put pen to paper and extended the tax credit, he also extended certain jobless benefits that were all included in the ‘Worker, Homeownership and Business Assistance Act of 2009’. This bill was singed into effect at a time when the national unemployment rate has officially hit 10%, an amazing number. Even while the stock market is climbing and breaking records, and the economy is slowly turning around, the unemployment rate is continuing to rise.

This extension of the first time home buyers credit was a much needed break for many individuals looking to live that American dream. While many first time buyers were scrambling to sign the paperwork before the November deadline, they now have a renewed sense of hope and some much needed time to find exactly what they’re looking for.

The initial tax credit for first time buyers gave a much needed boost to the real estate industry, and thus the economy. Many experts argued that without the tax extension, this volatile housing market that was beginning to stabilize would simply plummet. When it looked that the tax credit was going to expire in November, the housing market slowed and fear rushed back into the minds of those in the real estate industry.

Jim Shirley, a broker at Gum Tree Mortgage in Tupelo, Mississippi said 60 percent of the mortgages his company is working on now in New Albany, Oxford and Tupelo are directly related to the tax credit. – UPI.com

Joey Guyton, owner of J. Guyton Group, said 90 percent of his home sales over the past three months in a neighborhood geared at first-time homebuyers have been directly related to the tax credit. – UPI.com

The growth of the housing market over the summer was due greatly to the first time home buyer credit, and thanks to the extension the market will hopefully continue to grow well past the April deadline.

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