Home Buyers Close to Extended Tax-Credit Deadline

Home buyers are close to gaining more time to obtain a federal home-buyer tax credit of up to $8,000.

President Obama is expected to sign off on legislation as early as today following approval in both congressional chambers earlier this week. It would extend the deadline for the home-buyer tax credit, giving buyers with purchase contracts in place three more months to close on the sale.

Specifically, buyers would have to close before Oct. 1 to be eligible for the extended credit. The closing deadline was originally June 30. To be eligible, buyers need a contract that was in place by April 30.

The National Association of Realtors has estimated that about 180,000 otherwise eligible buyers were likely to miss out on the credit if the original deadline was upheld. It’s been difficult for some buyers to get their mortgages approved on time, as lenders work through a clogged pipeline of applications.

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