The Senate has amended a bill to give homebuyers who were under contract on a home purchase by April 30 an additional three months to close the deal and claim the federal homebuyer tax credit.
Lead by Senate Majority Leader Harry Reid, the amendment to HR 4213, the "American Jobs and Closing Tax Loopholes Act of 2010" would give buyers until Sept. 30 to complete their purchases and qualify for tax credits of up to $8,000.
Originally, the tax credits gave home buyers until April 30 to get a signed sales contract and until June 30 to complete the sale. This proposed change, approved by a 60-37 vote, would allow people who in contract to finish at the later date. About 180,000 homebuyers who already signed purchase agreements would otherwise miss the deadline.
The House passed an earlier version of the bill in December, and the Senate approved its own version in March. The Senate is currently working on resolving differences between the two bills.
The National Association of REALTORS® supports the amendment, saying REALTORS® have reported that as many as one-third of qualified applicants have been told by lenders that their loans will not close before June 30 because of the sheer volume of loan applications in the pipeline.
Saturday, June 19, 2010
Floor Insurance and Rural Housing
From NAR's REALTOR® Action Center:
Once again, Congress left town without reauthorizing the National Flood Insurance Program (NFIP) and the Section 502 Rural Housing programs. The NFIP is now expired. The Section 502 Rural Housing program has exhausted its funding and lenders have stopped accepting applications.
Until Congress extends NFIP, no new or renewal flood policies can be issued. Without the flood insurance coverage provided by NFIP, thousands of residential and commercial transactions are on hold.
Congress has also abandoned the Section 502 Rural Housing Program. The housing program provides zero-downpayment mortgages to eligible families in rural area of every state. Many of these families signed contracts before April 30th and plan to utilize the homebuyer tax credit. If this program is not restored soon, they will lose their chance.
Regardless of your location, rebuilding our markets in every corner of America is in every REALTOR®'s interest. The REALTOR Party must speak with one voice to urge Congress to renew both NFIP and the Rural Housing 502 program today. Please contact Congress today.
Once again, Congress left town without reauthorizing the National Flood Insurance Program (NFIP) and the Section 502 Rural Housing programs. The NFIP is now expired. The Section 502 Rural Housing program has exhausted its funding and lenders have stopped accepting applications.
Until Congress extends NFIP, no new or renewal flood policies can be issued. Without the flood insurance coverage provided by NFIP, thousands of residential and commercial transactions are on hold.
Congress has also abandoned the Section 502 Rural Housing Program. The housing program provides zero-downpayment mortgages to eligible families in rural area of every state. Many of these families signed contracts before April 30th and plan to utilize the homebuyer tax credit. If this program is not restored soon, they will lose their chance.
Regardless of your location, rebuilding our markets in every corner of America is in every REALTOR®'s interest. The REALTOR Party must speak with one voice to urge Congress to renew both NFIP and the Rural Housing 502 program today. Please contact Congress today.
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