Saturday, November 7, 2009

Senate Extends Home Acquisition Tax Credit

There has been much to do over the impending stop of the $8,000 first time home buyer tax credit. The tax credit is a incentive incentive that was set to expire on December 1st 2009.

The tax credit allowed first time home buyers acquiring their primary residence with a florida va mortgage to receive a tax credit of up to $8,000. With the expiration of the program many feared that purchase sales would slow and a market increase would be greater delayed.

Initial word are that the Senate has not only approved an extension of the first time home buyer tax credit, but an increase that would permit current home owners to also be eligible for a tax credit on a new house purchase as well even using Florida Hard Money Cash Out!

Sources within the Senate have hinted that there is a preliminary agreement to continue the so called “first time home buyer tax credit” until the end of April 2010. In addition they intend to expand the program to include a tax credit of up to $6,500 for home buyers that already own a house. The senate sources leekedthat one stipulation on current homeowners looking to purchase a new home and get the $6,500 credit is that they must have lived in their primary residence residence for the last several years.

It appears they will attempt to attach this new home buyer tax credit extension to the unemployment extension bill. It’s still unclear as to when the extension will arise for a vote, but this primary report is incredibly positive news for the housing market.

Many families have already been able to purchase a owner occupied home and take advantage of the first time home buyer tax credit. This 5 month extension and expansion will allow countless thousands more to benefit from it as well.

One point of concern for many home owners is not being able to access the tax credit early and use it as part of the down payment on their purchase. While HUD has allowed the use of the tax credit as down payment, financial institutions as we have seen all too often, have not gotten on board with it and widely ban the use of the tax credit for down payment. Third parties had been advancing borrowers loans to use as down payment in some reported cases. This is still not widely accepted by financial institutions and borrowers have had to wait until tax time to receive their credit.

If you have been in the time frame to buy a loan it looks like you will have until the end of April to get a Government incentive to do it!