This week after passing the House and Senate and signed by the President, the closing date for the First Time and “Move Up” Home Buyer tax credit was extended to September 30. I want to make this perfectly clear, the closing date for those purchases qualifying for the tax credit has been extended. The tax credit has not been extended!

There has been a lot of misinformation making the rounds about an extension of the Home Buyer Tax Credit, but this is not an extension of the Tax Credit, it is an extension to the length of time available to close loans entered into contract before the April 30, 2010 deadline for the Tax Credit. This time to close extension is from June 30 to September 30.

The NAR (National Association of Realtors®) estimated that the number of people nationally that would not be eligible for the Tax Credit due to delayed closing could be between 180,000 – 200,000 people. Many of them were probably trying to purchase a home on a short sale, which can take significantly longer than a normal buyer/seller transaction due to the bank involvement in the negotiation. If you are involved in a fairly straightforward transaction and haven’t closed yet, you might want to consider finding another lender – someone with local processing, underwriting and doc drawing – LIKE ME!

It is my opinion that the likelihood of another tax credit is pretty low, although I said the same thing the last time that it was extended. Sales did fall off after the expiration of the April 30 tax credit and we are waiting to see what happens to the market going forward. Lower interest rates could be another reason to bring people into the market actually saving more than the $8,000 (tax credit amount) over the course of the loan in interest.

Lower prices on homes, significant inventory of homes, negotiable sellers and low interest rates make for an excellent climate for purchasing a home. If you need a home, this could be the right time to look.

Contact me

Navigating the mortgage approval process can be daunting. You need someone on your side. I am available right now to help you with the loan process and know the ins and outs of FHA, VA, USDA and conventional financing. If you want to buy a home using an FHA loan or refinance using VA, I am here to help. Contact me at Alpine Mortgage Planning, 1200 Executive Pkwy., Ste. 100, Eugene OR 97401, 541-342-7576/541-221-3455 cell or by e-mail. Only you can make the choice it is time to get the process started.