Texas Mortgage & Real Estate Thoughts

In case you have not heard, the First Time Home Buyer (and Move Up) Tax Credit deadline has been extended.

Recently, the Senate has approved this extension to ensure that the First Time Home Buyers and Move-Up Buyers that are under contract will close/fund their loan and receive their tax credit. Based on reports, it showed that over 180,000 home buyers would have missed out on their extension if the tax credit deadline was not extended.

Now, this does not mean that any 'new' contracts would be honored. This extension is specific to home buyers that had a contract signed by April 30th, 2010 and will not be able to close on their loan until after June 30th 2010, which was the original deadline date.

I was shocked at the number of loans that could not close within that original 60 day window, but was not as shocked after I heard how many of these purchases were Short Sales or Bank Owned property. Those transactions do tend to take much longer, especially when the Lender and/or Realtor are not familiar with the process.

So, if you have been under contract since April 30th, there is still time to take advantage of the tax credit, up to $8000.