| Nearly 1.5 Million people have taken advantage of the | | | | bills in Congress provide alternate solutions toward the |
| $8,000 tax rebate since it's conception in January | | | | extension. Of course there is a lot of politics involved in |
| 2009. The tax credit has been available to all first time | | | | completing the extension, from all poitical parties. Here |
| home buyers. The first time home buyer is defined as | | | | is a brief summary of the extensions: |
| anyone who has now owned their own home for | | | | S1230: Senator Johnny Isakson introduced Senate Bill |
| three consecutive years. Oh, one more criteria for | | | | 1230 in June. The Bill proposes a tax credit up to |
| eligibility... It must be for your primary residence which is | | | | $15,000 that can be split over 2 year for everyone |
| unfortunate for investors. The credit is in the form of a | | | | who purchases a home for their personal residence. |
| tax rebate for 10% of the purchase price of the home, | | | | HR 2619: This one proposes to extend the existing |
| up to a total of $8,000. One of the great benefits of | | | | $8,000 tax credit to July 1, 2010 and adds provisions |
| the tax rebate is that is FULLY refundable to the | | | | for a tax credit of up to $3,000 for homeowners who |
| buyer. For instance if the first time home buyer owed | | | | refinance. This would certainly create a ton of |
| no taxes on their taxes, then the first time home buyer | | | | refinances. Is this part of the recent mortgage issue? |
| can amend their tax return and capture the full $8,000. | | | | Many Americans seem to use their home equity as an |
| The tax rebate has helped improve the national home | | | | ATM machine, pulling it out and spending it. I guess that |
| sales. The current tax rebate is set to expire on | | | | would potentially help spur the ecomony in the short |
| November 30, 2009. This means that the purchase | | | | term. |
| must be fully closed and completed in order to qualify. | | | | HR 2801 - Similar to S1230 but it extends benefits to |
| It typically takes approximately 30 days to close on a | | | | January 1, 2011. |
| home transaction with conventional bank financing. The | | | | Several key politicians are publicly making comments |
| point is that in order to be confident your purchase will | | | | about getting the extension approved by early |
| qualify you should plan to be under contract to | | | | November. Those making positive comments include |
| purchase your home by November 1, 2009. If you are | | | | Senator Bill Nelson of Florida, Senate Majority Leader |
| trying to capture the $8,000 tax rebate and have not | | | | Harry Reid and Senate Finance Committee Chairman |
| yet put your home under contract or you dont qualify | | | | Max Baucus. They are hoping to extend the rebate |
| for conventional financing then you need to consider | | | | along with unemployment benefits at the same time. |
| finding an alternate approach. One alternate approach | | | | One thing for sure is our current Government is |
| is to find seller financing. If the seller is providing the | | | | committed to spending an unlimited amount to try and |
| financing and you do not need to wait the typical 30 | | | | stimulate our economy. Our Leaders appear to be |
| days for bank financing, then you can still close by | | | | committed to short term gains at the expense of |
| December 1, 2009 without many challenges. | | | | future generations. That said, extending the first time |
| What about the possibility of extending the rebate past | | | | home buyer credit will certainly help encourage |
| December 1, 2009? There are currently several bills in | | | | American's to own their own home. |
| Congress that would allow the extension. Each of the | | | | |