Thursday, July 1, 2010

NFIP and New Home Buyer Tax Credit Extended

Buyers, sellers, real estate agents and mortgage loan officers have had a frantic few weeks. The $8,000 tax credit for first time home buyers was scheduled to expire June 30. Buyers had to have their home purchases in escrow by April 30 to qualify. Everyone worked feverishly to meet the June 30 deadline to close escrow. It is estimated that without the extension of the deadline, 220,000 sales would not qualify for the tax credit.

Also, as noted in my blog on June 25, Congress failed to reauthorize the National Flood Insurance Program, leaving buyers of houses in FEMA-designated flood plains unable to get mortgages.

Not a moment too soon, Congress awoke from its slumber.

The House and Senate have passed H.R. 5623, the "Homebuyer Assistance and Improvement Act," extending the first-time homebuyer tax credit to October 1, 2010 for any borrowers who've entered a binding contract by April 30, 2010.

Also, the Senate approved House-passed H.R. 5569, the "National Flood Insurance Program Extension Act," extending the NFIP through September 30, 2010 and reauthorizing the program retroactive to May 31, 2010.

President Obama is expected to sign both pieces of legislation into law today.

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