Update: Homebuyer Tax Credit Extension Approved by Senate

On Wednesday, the Senate approved a proposal to extend the closing deadline on the tax credit of up to $8,000 for home buyers.  As you recall from our previous blog the House had already approved the extension.

The proposed bill will extend the date of closing for eligible home buyers to September 30 to give lenders more time to process a crush of applications. 

The Home Buyer Credit can provide up to $8,000 for some first time home buyers and up to $6,500 for certain current homeowners.   It is feared that many of the qualifying home buyers will not be able to meet the June 30 closing deadline because of the surge in loan volume and delays related to home appraisals and short sales.

We’ll be following developments.