U.S. House Extends Closing Deadline for Homebyer Tax Credit
Wednesday, June 30, 2010
The U.S. House of Representatives voted to give home buyers who qualified for a federal tax credit more time to settle on their pending purchases.
The house voted 409-5 to extend the deadline for closing home purchases for Sept. 30. The program initially required borrowers who signed contracts before April 30th to complete paperwork by July 1 to get a tax credit of as much as $8,000
The tax credit may have fueled a temporary increase in home sales, which fell after the April deadline passed. New-home sales dropped 33% to a record low of 300,000 in May, the Commerce Department reported. Applications for loans to purchase properties fell at the end of May to the lowest level since 1997, according to the Mortgage Bankers Associations.
