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# 2010-20 : Federal homebuyer credit extended

Thursday, July 01, 2010

Federal homebuyer credit extended (7-1-2010)

Congress has extended the first-time homebuyer’s credit to purchases made before October 1, 2010, but only for buyers who had a written binding contract to purchase a principal residence prior to May 1, 2010. (H.R. 5623) The extension allows homebuyers who were unable to close by the original July 1 deadline extra time to receive the credit because lenders were unable to complete paperwork in a timely manner. The President is expected to sign the legislation.

The federal credit is NOT available for buyers who purchase a residence on or after May 1, 2010.

California credit almost gone

In the meantime, the $100 million allocated to the California credit for a first-time homebuyer will likely be used up within the next few days. So if your client qualifies for the first-time homebuyer credit, fax Form 3549A immediately.

Of the $100 million allocated for the California New Home Credit, only approximately $42 million has been claimed, so there is still time to apply for that credit.

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