More time for homebuyer tax credit?

Blog readers hope the $8,000 first-time homebuyers' tax credit will be extended. (Photo: iStockphoto)

Do you want Congress to extend the deadline for the first-time homebuyer credit? If so, make your voice heard at the Cyberhomes.com blog and let everyone know why the credit should be extended. Many Cyberhomes' readers already have, in response to post, "Extension of homebuyer tax credit?" by my fellow blogger, Pat Curry.

The first-time homebuyer credit, in which new homebuyers can get a federal tax credit of up to $8,000, is set to expire on Nov. 30. This leaves consumers interested in qualifying for the tax credit (by closing on a home) less than four months to do so.

How likely is Congress to extend the deadline? Opinion on whether Congress will lengthen the time period for the credit is mixed. Kenneth R. Harney of the Washington Post thinks an extension will happen, but doesn't expect Congress to widen the scope of the credit to make the dollar amount larger or to include all homebuyers (not just first-time buyers).

Meanwhile, in an article published on NPR.org, National Association of Realtors spokeswoman Mary Trupo says she's unsure whether concerns over the federal budget deficit in Congress will get in the way of extending the timeline for the credit: "Some members of Congress are receptive, but there's a lot of work to be done to extend the credit," NAR quotes Trupo. "We don't know what the end result will be."

Cyberhomes readers weigh in

To date, Curry's post has elicited 27 comments from readers of this blog, and a full 26 are strongly in support of the credit, with many saying it would allow them to finally be able to afford their first home.

Says one reader: "After renting for 19 years, I decided this was the year to buy a house because of the rebate. Bad news is I've been out of work since March 2009 and it doesn't appear I will get a job in time to close the deal before the 11/30/09 deadline. PLEASE EXTEND THIS DEADLINE and it wouldn't hurt to increase the rebate amount to $10,000! I'm trying to stay under a $100,000 mortgage, which is pretty difficult in the major metropolitan areas, so I am even considering a move to the country and a lower paying job!"

And while some readers hope the credit will be changed to benefit all homebuyers, not just first-time buyers (or those who haven't owned a home for at least the past three years), others do not think that the credit should be broadened to include more buyers.

Says "Raj": "I think they should extend the deadline by a year to buy a house i.e. Nov 30, 2010 or for that matter Dec 31, 2010. I think it should be restricted to only first time home buyers. If they extend it to everyone I think there is a potential problem of people buying as an investment and creating a mess again. Unless the buyer will be using it as a primary residence."

Readers: What do you think? Should the first-time homebuyer tax credit be extended? If so, should the credit be broadened to include all homebuyers, not just first-time homebuyers?—Lauren Baier Kim

Read More on: affordability, taxes, first-time buyers

53 Comments

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Yes, please extend the credit and allow it for all buyers. This would give an extra incentive to sellers to sell and move up or down. In San Diego we need more equity sellers. In fact we need more homes on the market period!

Comment by Christa Borellini christab@prusd.com 24 Aug, 07:12 PM
i would love to see the tax credit extended i just moved into an apt. in order to get my son in a better school district and am now in a lease untill next july my goal is to buy a house by july 2010 it would really help if they would extend the tax credit at least another year

Comment by jamie 24 Aug, 08:30 PM
Please extend the homebuyer's stimulus tax credit. I want to buy in a new development and there isn't time to finish building the house and close before the current deadline.

Comment by august 25 Aug, 11:31 PM
Please extend the rebate!! I'm planning on selling my home in the Spring of 2010. I hope they do this!! I will list my home FSBO.

Comment by Patricia 26 Aug, 05:25 PM
As a first-time buyer myself (who has an offer in on a short-sale, waiting on pins and needles for the bank to respond) I would whole-heartedly agree with extending the first time home buyer's tax credit through next year. And it's not TOTALLY mercenary on my part! :-) I have several friends waffling on wanting to buy their first home. I think it is good for the economy, but I wouldn't expand the scope of the credit TOO much. I'd keep it at $8,000 or $10,000 at most and try to make sure it will stimulate home-buying but NOT help people who just want to invest in real estate or "flip" houses for a quick profit. That's what got the housing market in trouble in the first place. We want to encourage people to buy houses and stay in them long term, not try to make a quick buck. I think it is reasonable to expect people to live in the house as their primary residence for at least 3-5 years. But why not increase the amount of the credit and expand it to anyone purchasing a house? That seems reasonable to me. Not sure about eliminating the income limitation, though. The rich don't necessary need MORE tax breaks, but if it will stimulate the housing market, why not?

Comment by ScottA 26 Aug, 05:38 PM
I really hope they expand it to include anyone purchasing a primary residence. I have been separated from my husband for more than two years. But because he has a home in his name and we are not legally divorced, I can't take the credit. I want to start over myself and $8000 would be a great benefit to a single mom of three. I work, I pay taxes, I am not looking for a handout. I just want the same opportunity.

Comment by hopeful in north carolina 27 Aug, 01:30 AM
Extending the tax credit is the best thing for the country. So I don't think congress will do it but they extended cash for clunkers so this might have a chance. I hope they do extend it.

Comment by jose 27 Aug, 04:41 AM
I would love it if they would extend the tax credi until next year. I"ve been looking for a house for two months now and have put in about five offers; none of my offers were accepted and I've offered over 20,000 dollars above the listing price. I didn't realize how hard it was going to be to buy. I know there's a lot of investors who are paying cash for these homes or putting down 20%; I have money saved up for a down payment and closing costs, but I can't afford to pay cash or even put 20% down. When offers are considered, I understand the banks look at cash offers first, then conventional loans, then FHA, and lastly VA loans. It just seems as though more investors are buying these home and don't give other buyers who now for the first time can afford a home, a chance to buy. I think the tax credit should be only for those of us who have never owned a home and maybe it will be a little easier for us to buy these homes.

Comment by Grace 27 Aug, 03:09 PM
When will we learn? We are facing TRILLION dollar deficits. By continuing to consume our future using these "tax credits", we are sprinting to the cliff. We have allowed ourselves to create this fiction that somehow this is "free" money and that there is no downside to spending like a drunken sailor. Cash for clunkers is another example of self delusion. By creating this burden on our economy, we are essentially executing ourselves. Destroying our currency is NOT a solution for economic prosperity and to encourage even more foolish spending is ludicrous, short sighted, and as a 30+ year Realtor I think it is incredibly bad policy to support this destruction of our currency for a few "today" bucks. If we survive all this spending madness, generations to come will wonder at how self serving we were to stand by and let this happen.

Comment by Bill in Oregon 28 Aug, 12:50 PM
Here's hoping our government will continue this into 2010. I found out about this tax credit in May 2009. I am trying to save for downpayment, but the time is so short. There are so many houses on the market that I am interested in and I really need a permanent place to live. This $8000 rebate is such a fantastic opportunity and I don't want to miss out on it. I originally thought the credit could be used as downpayment, but that is not the case. In 2008 some legislation was passed prohibiting the bridge loans. Oh well... that's the way it is. If any of you know of any way to negotiate the credit into a downpayment now, please post it. I pray we get the extended opportunity. It would be good for us and the economy.

Comment by Hopeful in NC 28 Aug, 01:18 PM
Extending the credit will help America. This is exactly what the real estate and mortgage industry needs to rebound and get back to pre 2009 levels of success. It should be open to all buyers of primary residences only. Not secondary homes or investment homes.

Comment by Jack 29 Aug, 03:45 PM
I wish to purchase by the end of 2010 and would really appreciate it if the tax rebate was extended for at least another year. As a first time home buyer, this would help me out tremendously, after all the economy can still benefit from all of the home purchases!

Comment by Brenda 3 Sep, 02:47 AM
I am PRAYING they will extend the credit until next year. My family and I plan on buying 2.5 acres of land and putting a nice modular on it. I applied for my loan in July and got approved but I couldn't get a construction loan. So I can't close on the loan until the house is actually built and ready to move into which won't be until the end of Jan 2010. To think I will miss out on this great credit by 2 months just makes me want to cry. I have worked so hard to get this done ASAP but it is a slow process.

Comment by Chelsea 10 Sep, 01:00 PM
i hope they will extend the program until next year,in my situation i want to buy a home but cannot qualify for this program because i sold my home 2 1/2 years ago the program ends on nov 31 there is no way i can qualified for this program unles they extend the program because they required 3 years without primary residence in order to be qualified.

Comment by marlou 10 Sep, 05:43 PM
I hope they extend the Home Buyers Tax Credit beyond December 1, 2009. My family will be first time home buyers but we have had medical bills we are still paying on and it reduced our credit score. We are in the process of paying off bills and trying to raise our credit score however I don't think we are going to be able to do it in time for the December 1, 2009 deadline. If Congress extended it for one year that would give us the time to improve our credit score and get a home. There are a couple of our friends who are in a similar situation. I think they should sent these comments to Congress and let them know there are real people out there who need this extension. Thank you.

Comment by Vicki S 14 Sep, 11:32 AM
I do not think the government should extend the deadline for the tax credit. Pleanty of time has been allowed in this tax credit alreayd and it is not the government's responsibility to continue to make it available for people if they have not been able to take advantage so far. Second, our government's debt is already out of control and an extension would worsen that situation by reducing tax revenues. Third, unrealistic inflation of home prices is a likely result of this tax credit. I am a potential first time home buyer myself and I have seen activity and home prices increase in recent weeks simply because people want to take advantage of the teax credit. What happens when there is no tax credit? I think we will see prices begin to drop again and I worry that what we are experiencing now is a false bottom. The worst thing to do would be to purchase a house JUST to get the $8000.

Comment by Ryan 14 Sep, 02:16 PM
I absolutley think they should extend the first time home buyers tax credit, and not only because it would help and bennifit me. I like many other first time home buyers that was laid off last year and forced to move into an apartment! Of course with out full time employment I could do NOTHING except continue to rent, thank GOD i was at least able to do that, even if it is the biggest rip off out there in the housing market, and yes for all land lords out there bennifiting from young families misfortunes, I hope you get whats desrved to you. None the less, as anyone will tell you, finding a house is not a one day process nor is it even an 6 mo. process. To get all your ducks in a row, find a NEW JOB, buying the supplies you may need a head of time, not to mention oh yes, finding a place you WANT to invest into, to, as many have stated, STAY in for more than a year or two. Its more than time allowed, however, this is the U.S. Government we are talking about, and screwing people is something they do well. Extension? Maybe, Screwed over? Likely!

Comment by BOB SMITH 17 Sep, 07:41 PM
Only if it is applied equally to all buyers. (today a spouse can exclude a 1st timer) When the market was good the pundits all wanted market forces to rule. Now we want special deals, stimuli etc. Best solution, let it expire.

Comment by Johnny P. 18 Sep, 05:46 AM
I do not think the tax credit should be extended. We are offering free money so people can buy a home.....Sounds familiar. I think it is the buyers responsibility to SAVE for the downpayment. This will cost us all in the long run.

Comment by Chris 18 Sep, 09:00 AM
I think they should extend because I'm one of the many who are running out of time to be able to close in time. My wife and I have already put in offers and have been out bid or have been told what we can afford isn't enough for the seller. The bottom line is it takes time to make a deal and you can't keep lookin while your in offering mode.

Comment by Jack in Wisconsin 18 Sep, 02:07 PM
It makes sense to extend the tax credit for a number of reasons. The first being that it is taking more then three months to close on a home. As we know the Banks are dragging their feet and anyone buying a home now might not get their closing until sometime in December. Another is that the whole problem with what is going on in the country today is due to the housing market. If the government wants to turn this around they are going to need homeowners to do this. I believe not only should the credit be extended but also it should be increased. A lot of the homes out there for sale are in poor shape and need repairs and that takes money. If these new homeowners are going to take a chance on buying a house in this market then the government needs to step in and help. Remember everyone this is our money we are looking to get back from them. Where do you think the tax credit is coming from? If you answer were from our taxes, you would be right.

Comment by MICHAEL WALSH 20 Sep, 09:04 AM
I think that the tax credit should be extended. We are in the process of trying to buy our first house in over 20 years. The only problem is that the wonderful credit bureaus have messed up our credit rating by not removing things that should of been removed years ago and so I am now waiting until they can remove it so my score goes up. We have the house that we want to buy. It is no castle but would be a great foot in the door. We have not bought a home inthe past because of how the market went crazy and kept the av erage family out of a house unless they wanted to get a mortgage that was risky and now the market is finally favoring the buyer. So please extend this credit .

Comment by Shan R in Utah 21 Sep, 11:39 AM
While I think that extending the credit to everyone would be manipulated and aid many wealthier people in amassing more wealth, I would really like to see the credit extended to first time home buyers. I will be getting married in less than 3 weeks, and while we were initially planning to buy about 3 years into our marriage, this credit would allow us to buy NOW without overextending ourselves, making sure that we could make the puchase and still have some money to cover the "unexpected" emergencies that any resposible homeowner has to expect

Comment by Jim 22 Sep, 01:33 PM
I wanted to buy a house but i was out of a job for a while, getting back on my feet, was looking to buy a house but my credit is not there just yet. I also can get it there but i don't want to buy something i don't want just to be in a hurry and i think that is what some people are trying to do and in the long run they will not be happy with their purchase. I think the idea for first time home buyers is a good so people don't buy up all the real estate and try to rent it out for high prices. If they even just extended it til july 2010 it would help alot of people out especially people that need a job for a year to apply for loans since this is a requirement and alot of people r not at fault for losing their jobs. Also when it comes to buying shortsales which can be a bargain at times also takes a while, sometimes up to months to get an answer back from banks. I think this will take the stress of of people trying to wait for answers on banks taking forever to make up their minds and if they say no to your offer then u have time to try again. Extension would help alot of people still and people would still buy houses through the next year.

Comment by telina 22 Sep, 07:01 PM
I think the home buyer credit should be extended until November 2010. This will boost the economy for everyone and increase safety for neighnorhoods. The more the purchase price drops on the market homes, the more value the surronding home owners will lose. If the credit is extended, this will give more time for potential home buyers to save up for down payment, and be prepared to purchase. This credit will eleviate the fear of losing your home if there are more layoffs, allow money to go back into the economy for purchase, and will ensure reserve funds. Many homes that have been forclosed, are sitting vacant, opening oppurtunity for danger, in safe neighborhoods.

Comment by Con 28 Sep, 04:05 AM
Having rented for many years and getting married in 2010, my fiance and I wanted buy a house. The $8000 tax credit really gave us the push we needed to start making it happen. Unfortunately, we didn't know we had learned about the tax credit a little too late in the year. By the time we got our finanaces in order and started looking, we've realized we won't make a decision or close in time for the 2009 deadline. I think an extension on the tax credit would be beneficial. Now that people are becoming more aware of the program, they will know to take advantage of it before the next deadline. I think limiting it to first time buyers and keeping the amount around $8,000-$10,000 is practical in helping eliminate more debt, but allowing a positive incentive program.

Comment by Rachel 29 Sep, 12:38 PM
We would be closing in a couple weeks if the sellers agent was'nt being such a jerk. He is refusing to work with my agent, which has stalled the process. After consulting with my states realestate commision and filing a complaint hopefully we can resume the process and close by the deadline. Due to his obstructing the process I could miss out. Please extend it.

Comment by KW 29 Sep, 07:09 PM
Yes It would be good for them to extend the tax rebate so I can refinance the house later with that money as well and make it more affordable for me. I am trying to disspute little things on my credit so it would be nice to not have to rush into the whole process, I want to be ready.

Comment by Christine 30 Sep, 10:42 PM
My husband and I will not by a home unless the tax credit is passed.Going into a new home can be expensive and I urge Congress to pass a bill extending this credit.

Comment by Jennifer 6 Oct, 11:40 AM
To the Congress: please extend the first home buyer program tax credit so my wife and I will have more time to search and buy a house.thanks

Comment by Jorge 8 Oct, 12:28 PM
It would be great to extend the tax credit. My family is in a good place where we are cleaning up our credit and want to be able to buy a house next year (2010).

Comment by Jules 8 Oct, 12:30 PM
I strongly feel the credit should be extended not only to first time home buyers but to people buying a home that will be their primary residence. To many investors are buying most of the good homes and are selling at a higher price. This is not fair to people that have worked hard and saved money to find a nice home at a decent price. I am trying to find a home now but with the competition and everyone trying to close before Nov 30th, it's hard to find a home. I've been looking for 2.5 months now and I still haven't found any luck. I will have to re-apply for my loan and hoping my credit score did not change.

Comment by Debbie 10 Oct, 12:35 PM
I think in order to be fair to the millions of people waiting to close on homes that they are already in purchase agreements on, the government should extend the tax credit at least another six months. you will see a sharp drop off in the number of homes sold and people backing out of homes they couldn't close on in time if there isn't an extension. The banks are swamped right now with real estate sales, short sales, and forclosed home sales...a lot of people are going to back out of the sales if they can't close in time.

Comment by Joe from Michigan 12 Oct, 10:11 AM
I would really hope they extend the tax credit at least 6 months, or even extended it to those who are already in a purchase agreement. I am still waiting to close on a house and was just told that it I may not be able to close unitl sometime in Dec.

Comment by Nate from PA 16 Oct, 09:24 AM
PLEASE EXTEND!! I am in a similar situation as some of the others. Currently waiting for the bank in a Short Sale and they are dragging there feet. It doesn't look like we will close in time. If we don't get an answer soon we will be forced to continue renting and would no longer be looking to buy a house.

Comment by Antonette 22 Oct, 10:15 AM
OBAMA! please please extend the homebuyers tax credit! I am 28 and buying my first home its a shortsale.Its been on the market since December 2008! The banks never respond or even bother to look at any offers that have been made on this home.I am he third and final bidder still left standing for this house the other two have since found other homes.I only make around 28,000 a year but Ive managed to save 20% down on 162,000 dollar home And Im paying my own closing cost! My credit score is 780 and I have no creditcard debt.I paid off all my debts to live debt free and start saving for a home. I Finally found what I consider to be the only home that isnt a gut job at the top of my price range.However this home still needs 2 bathroom remodels its from the 70s. Flooring in a room.This house doesnt have any appliances so A refrigerator,stove,washer and dryer,no electric in the basement it needs walls flooring, ceiling. A fence,new locks...ect thats all I know of at this point because it hasnt been inspected. Ive done everything right and I cant help but feel lured into the housing market with this 8,000 first time homebuyer tax credit only to have a deadline of November 30 to close by and a Bank that wont hurry up the process.It feels like the Banks are intentionally doing this.I mean how long does it take to say yes or no to an offer that was over the asking price.Not to mention its almost winter and its an empty home so we are a few weeks away from pipes bursting which would make the home worthless.It seems like the Banks are run by a bunch of idiots that dont care about anything. So I really need an extension.I would hate to have to live in a home with no appliances or risk having to start off in a new home with massive credit card debt just to get the things done that this 8,000 tax credit would really help.Look I dont want to hear the News channels reporting that retail sales are down this christmas because it will be Obamas fault. when I misss out on my deadline November 30 and the 8,000 I will still buy this house because like I said its the only nice one in my town. I wont be shopping for me or anyone else I'll be SAVING! So do the right thing Obama stop wasteing your time in other countries.Worry about ours!

Comment by BS 23 Oct, 12:28 PM

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