On Wednesday, the Senate approved more time for homebuyers seeking to claim a federal tax credit. 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. Many of the qualifying home buyers were 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.
The homebuyer measure would help only those that entered into binding contracts before April 30. It would give such homebuyers until Sept. 30 to close the sale. Under current law, they would have had to have closed by June 30th to be eligible for tax credits.
The measure passed the Senate by unanimous voice vote. President Barack Obama is expected to sign the homebuyer measure, which the House passed earlier this week.