Contract in hand, more time to settle

The Senate passed an amendment that extends the first-time home buyers $8,000 tax credit by three months IF you already have a contract in hand.

The U.S. Senate voted on Wednesday to give homebuyers another three months to settle on their contracts and take advantage of a popular tax credit that sparked a rush of activity in the housing market.

The amendment also includes the $6,500 credit for existing home owners looking to change their primary residence. This is an extension for closing on existing contracts, not for any new contracts that came after the earlier deadline of April 30th. The new deadline for closings is September 30th and is welcome by buyers and banks who have been caught in the logjam of so many closings trying to come in under the previous deadline.

Read more about it here.