The First Time Homebuyer credit has been extended, but not everyone is eligible to continue to take advantage of this credit. Only buyers who were under contract prior to the previous deadline of April 30 can take advantage of this extension to close by September 30 and receive the $8,000 credit.
One of the main reasons for the extension is that there are a high volume of short sales under contract but not scheduled to close by June 30th. This is mainly due to short sales requiring seller side bank approval. As many banks are inundated with these requests, this backup could have caused buyers to miss out on the credit without the extension to September 30th.
Have questions about the First Time Homebuyer credit? Contact the Real Estate and Construction Group at Skoda Minotti, a CPA, business and financial advisory firm with offices in Cleveland and Akron, at 440-449-6800.