The Associated Press is reporting that the U.S. Senate has voted to pass a bill that would extend the first time homebuyer tax credit as well as expand the program to provide a tax credit to existing homeowners looking to purchase a home.
First Time Homebuyer Tax Credit
The bill extends the availability of the credit to June 30th. Homebuyers would have to close on a property by this time though they would have to be under contract by April 30, 2010 in order to qualify.
The $8,000 would remain the same under this bill.
Existing Homeowners Looking to Purchase Homes
The bill expands the program to include homeowners who have owned their primary residences at least 5 years. The timing is the same as above. Contracts would have to be in place no later than April 30, 2010 and the new property closed by June 30, 2009 in order to qualify. However, military personnel serving overseas at least 90 days would get an additional year to take advantage of the program.
These homebuyers would be eligible for a $6,500 tax credit.
Wait and See but Promising
The U.S. House is expected to vote tomorrow. If a final bill clears both then it will be sent to President Obama to sign.
If it comes to this, there is no doubt in my mind that President Obama will sign the bill into legislation.
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Since the taxpayers are paying the bill anyway, why don’t we do something to keep more people in their homes. This will at least limit the number of homes that are on the market and maybe help establish a floor on the market. Unless we tackle this issue we may be stuck in this housing rut for awhile.