Sir Waldo

Last Call for  the  Tax Credit for First Time Ho m e Buyers?? 

 

Most of the information coming from Washington DC indicates that the First Time Home Buyer Credit will be extended, as noted from our lobbyist in DC.

Tax Credit Extension & Expansion

There will be an important vote in the Senate this week on the housing tax credit provision.  The “Dodd-Lieberman-Isakson” amendment would extend the tax credit to June 30, 2010.  It would expand the credit to any homebuyer and raise the income limits to $150,000 ($300,000 for joint returns).  The amount of the tax credit would remain at $8,000.   

Prospects:  We still believe the prospects are good for extension of the tax credit.  There is real concern in the Administration about the strength of the economic recovery.  Treasury Secretary Geithner was quoted in the November 2nd Business Week magazine stating: “we’re not going to make the mistake many countries made in the past of putting the brakes on too early and creating the risk of a weaker recovery with even higher levels of unemployment.”  On the negative side, the stories about fraud in tax credit program (e.g. children and current homeowners receiving the tax credit) and concerns about the program cost obviously do not help. 

NAR is making a major push for the expansion of the tax credit to all homebuyers.  While it appears unlikely that it will be expanded beyond first-time homebuyers, NAR efforts could have a positive impact on the outcome.   We will keep you apprised.

REMINDER       Buyers must close by 11/30 to qualify for the tax credit this year.  All applications for this year’s credit should be into your lender Friday 10/30 to assure sufficient time to be processed and closed by the deadline.  Applications will be accepted after Friday but we will not be able to provide assurance that they will close in time for the credit although we will do our best to meet the 11/30 deadline.  Please keep in mind the following:

1) Mortgage Information Disclosure Act requires a 7 day waiting period between application and a closing date.

2) The week of November 23rd is thanksgiving week when many folks travel to be home with family and is usually a difficult week to coordinate with consumers.

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