Home Buyer Tax Credit Extended To September 30 And Flood Insurance Program Restored

by Rich Vetstein on July 1, 2010

in Insurance, Massachusetts Real Estate Law, Tax Credit

Congress gave home buyers some good news before the July 4th holiday weekend.

Home Buyer $8,000 Tax Credit Deadline Extended to September 30

Congress approved late Wednesday an extension to the June 30 closing deadline for the home buyer tax credit, hours before it was set to expire. The move will give would-be buyers who signed a purchase agreement by April 30 more time to close on those deals and receive the credit that is worth up to $8,000. The new deadline is Sept. 30.

The Senate approved the measure unanimously on Wednesday, one day after the provision sailed through the House of Representatives with little opposition. The President is expected to sign the measure soon.

More: Wall Street Journal

Flood Insurance Program Restored

Even better than the tax credit was Congress’ move to restore funding for the federal flood insurance program which had run out of money on May 31. Perhaps Congress read my prior blog post on this situation!

The Senate has passed the funding extension until September 30, 2010. This will allow transactions to move forward. The bill is retroactive and covers the lapse period from June 1, 2010 to the date of enactment of the extension. It’s a short term fix, but it will get closings completed for homes in flood zones. Congress will have to revisit this in September.

More: P&C National Underwriter

Have a happy and safe Independence Day Weekend everyone!

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