Closing Deadline for Home Buyer Tax Credit Extended to Sept. 30th

Washington has once again extended the closing deadline to qualify for the $8,000 first-time home buyer tax credit or the $6,500 current home buyer tax credit. The new closing deadline is September 30, 2010.

Unfortunately, Congress did not extend the purchase agreement deadline beyond April 30th. This means that only buyers who had entered into a purchase contract on or before April 30, 2010 will be eligible for the tax credit. The extended closing deadline will just give those buyers some additional time to close the sale beyond the prior June 30th deadline.

The extension of the closing deadline was necessary because some types of sales, such as bank owned properties and short sales, require more than the typical 30-60 days to close.

For more information about how the tax credit works, please see my prior posts:

Down to the Wire; Last Days to Qualify for the Home Buyer Tax Credit

First-Time Home Buyer Tax Credit Extended

TIMING IS EVERYTHING: First-Time Home Buyer Tax Credit Increased for 2009

For questions about the home buyer tax credit, please contact me or use my online legal services.