Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

Homebuyers could get more time for tax credit

By Tami Luhby, senior writer


NEW YORK (CNNMoney.com) -- First-time homebuyers looking to land an $8,000 federal income tax credit may have a little more time to close on their purchases if a Senate amendment unveiled Thursday makes it into law.

As it stands now, homebuyers must have signed contracts by April 30 and must close the deal by June 30. They could be eligible for an $8,000 tax credit if they are first-time buyers or a $6,500 credit if they owned and lived in their previous home for five of the last eight years.

The closing deadline, however, could be pushed back to Sept. 30 under an amendment offered by Senate Majority Leader Harry Reid, D-Nev., Sen. Johnny Isakson, R-Ga., and Sen. Chris Dodd, D-Conn. The senators said they want to make sure banks have time to process the transactions -- especially short-sales, which is a more involved process.

"By extending the transaction deadline, we can ensure that everyone taking advantage of this credit can complete the purchase of their new home, Reid said.

It remains to be seen, however, whether the amendment will go anywhere. It's part of a controversial jobs and tax bill that may be radically changed before the Senate approves it. Lawmakers are not scheduled to vote on the bill until next week at the earliest. To top of page


Overnight Avg Rate Latest Change Last Week
30 yr fixed3.87%3.83%
15 yr fixed3.07%3.06%
5/1 ARM3.10%3.12%
30 yr refi3.87%3.83%
15 yr refi3.07%3.07%
Rate data provided
by Bankrate.com
View rates in your area
 
Find personalized rates:
Index Last Change % Change
Dow 20,763.89 216.13 1.05%
Nasdaq 5,983.82 73.30 1.24%
S&P 500 2,374.15 25.46 1.08%
Treasuries 2.27 0.04 1.61%
Data as of 10:57pm ET
Company Price Change % Change
Bank of America Corp... 23.63 0.92 4.05%
General Electric Co 29.55 0.00 0.00%
Micron Technology In... 26.57 -0.75 -2.75%
Chesapeake Energy Co... 5.38 -0.14 -2.54%
Ford Motor Co 11.43 0.09 0.79%
Data as of 4:02pm ET

Sections

Wells Fargo's board of directors is under fire ahead of Tuesday's annual shareholder meeting amid criticism the board failed to do enough to prevent the fake account scandal. More

Reports Monday afternoon that Trump may propose a 15% corporate tax rate would seem to indicate that he won't lose sleep over adding substantially to the country's already-high debt. More

The Canadian province of Ontario is set to give thousands of dollars to low-income residents to see if its improves their health and job prospects. More