Obama May Extend Homebuyer Tax Credit

The Obama Administration may lengthen the deadline for the first-time homebuyer credit.

Obama may give homebuyers more time to use the first-time homebuyer credit.

It appears that my fellow blogger, Pat, may be right: It's looking more likely that the federal $8,000 tax credit for first-time homebuyers will be extended.

The White House house's economic team is looking at the tax credit's impact on new-home sales and will make a recommendation to President Barack Obama, says the Associated Press.

The current deadline (of before Dec. 1, 2009) is looming fast, giving homebuyers looking to benefit from the credit very little time to find a home, purchase one and seal the deal. Here on Cyberhomes.com, we've had nearly 90 readers write in to this blog to say they're hoping the credit will be extended, and that if it is, they will most likely buy a home.

Many of our readers have written in about the difficulty of making the deadline. Completing a transaction on a home can take weeks, and with so many short sales and foreclosures on the market, house seekers have been telling us that they want to take advantage of the tax credit, but with all the red tape and time it takes dealing with a bank to buy a distressed home (and competing with other interested buyers to win a bid on a home), it's unlikely that they'll be able to make the current deadline.

Says blog readers Jessica and Luke: "Congress PLEASE extend the credit! We are trying to patiently wait on a "short sale" home. We put the offer in on 6/25 and are STILL waiting for the 2nd Mortgage company to approve us (1st Company has already approved). This is our DREAM home that we hoped to purchase before our June 2010 wedding. We already have the down payment, just waiting for CHASE to approve. By extending the credit, we won't be forced into settling for another home by the November deadline!"

Meanwhile, many readers have written that they'd love to take advantage of the tax credit, but with the current economic downturn, they wouldn't be able to afford a home at this time -- extending the deadline would give them more time to save the needed amount for a home or find a new job after a recent layoff. 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."

Readers: If the homebuyer tax credit deadline is extended, will it prompt you to purchase a home?—Lauren Baier Kim

76 Comments

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Yes. I'm already well into the process of buying a home this year, but in this buyer's market, not having found the right home just yet, would rather take a wait-and-see approach. If the credit is extended to next year, I can focus on distressed properties rather than focus on those where the transaction can finish by November 30.

Comment by Rashad 17 Sep, 01:59 PM
Yes my husband and I have started looking for a home and would greatly benefit from the tax credit. We have just been able to come up with the deposit for a house. Time is of an essence!

Comment by Adriana 17 Sep, 06:57 PM
Absolutely! Unfortunately, with a job loss earlier this year and the subsequent damage to our savings and credit reports, we are are anxious to buy but need a few more months to get ourselves properly situated. I would be ecstatic if the credit was extended into next year!

Comment by Kristi 17 Sep, 08:15 PM
Knowing that there will be a tax credit would help my nerves. I've been gun shy with the long process of purchasing any home, having the credit would cause me to not have to rush as much plus there wont be as much competition.

Comment by Kip 17 Sep, 09:21 PM
My wife and I signed a contract to build in May with a Sept/Oct delivery date. Well, various delays have pushed our delivery date until the end of November. Any other delays will push it to December, which will disqualify us for the tax credit. I'm crossing my fingers that it gets extended.

Comment by Crossing My Fingers 17 Sep, 09:51 PM
I HAVE BEEN LOOKING FOR A HOME FOR ME AND DAUGHTER FOR NOW 2 MONTHS WANTING TO TAKE ADVANTAGE OF THE TAX CREDIT. BUT I DO NOT WANT TO RUSH AND GET A HOME FOR US IN A BAD NEIGHBORHOOD OR A HOME THAT WE ARE NOT HAPPY IN BECAUSE THIS IS GOING TO BE OUR FIRST HOME AND THIS IS A LONG TIME INVESTMENT FOR ME. I WOULD LOVE TO SEE A EXTENTION ON THIS TAX CREDIT. THIS WILL BE A BIG HELP FOR ALOT OF PEOPLE AND ALSO SINGLE MOMS LIKE MYSELF.

Comment by ANNA 18 Sep, 10:38 AM
Yes, Definitely!!! We are in process of looking for a house and if the tax credit is extended, that will give us enough time to save a little more money for down payment and give us that little extra time to look for our first home...:) Truly hope the tax credit is extended for another 6 months or so...

Comment by A D 18 Sep, 10:55 AM
We're planning on buying regardless of the tax credit. To be honest, I see the tax credit as both positive and negative. Positive because it means that I'll have less out of pocket expense (DPA from housing authority). Negative because it's creating a mini housing bubble and quite a bit more competition. Extending the credit might lessen the competition, especially if the credit is extended through the summer of next year.

Comment by John 18 Sep, 12:20 PM
Absolutely will buy if the tax credit is extended! Our daughter is looking for her 1st home and she needs this tax credit. She's a college grad, with a college debt she's paying off, and a car payment. She's frugal, ambitious and loves her job. There's no time to find a home and close by Dec. 1. We're trying but it's looking like it probably won't happen. She won't buy if the tax credit isn't extended.

Comment by Monica 19 Sep, 08:50 AM
Absolutely would help me!! I'm looking to buy a house right now but don't want to rush and buy the first thing just for the tax credit. However, the tax credit would really help financially. I think they should definitely extend the tax credit because we are now beginning to see glimmers that the economy is starting to turn around. If they extended the tax credit I feel it would continue to improve the housing market/economy.

Comment by ZPN 19 Sep, 12:20 PM
The answer is very simple. Yes -- if the FTBC is extended -- NO if it dies on 12/1/09 and we haven't closed. After all the Billions Obama gave to Detroit and then the cash for klunkers AND THEN extending the klunker program, extending FTBC is no only necessary but FAIR.

Comment by Hold my breath 19 Sep, 06:51 PM
I've been actively shopping for a home, trying to take advantage of this "perfect storm" of a strong buyers' market, interest rates that will probably (hopefully!) not be this low again in my lifetime, and the $8,000 credit. Take away any one of those and I am less likely to buy in the near future.

Comment by Jan 19 Sep, 10:23 PM
Yes, definitely! My husband and I are looking to buy our first home soon. It will be a great help financially as it would help us a great deal on out of pocket costs. However we need more time. We are just beginning to start the process and don't want to rush into any home just to meet the deadline. I also agree that it will improve the housing market.

Comment by Felicia 20 Sep, 06:36 PM
I submitted an offer on a "short sale" over 2 months ago. However, I still do not know if the bank accepted my offer. I have completed all of my financial responsibilties, but as time ticks away...I still have not heard anything from the bank. I was really looking forward to applying the tax credit to my home purchase, but it doesnt look promiing. I really hope the tax credit deadline is extended.

Comment by kim 21 Sep, 08:32 PM
The tax credit is only relevant insofar as a buyer has immediate cash flow issues. In many areas, house values are stagnant or dropping, and in those markets it doesn't take long to burn up $8,000 in equity. Especially when transaction costs for sellers generally take a 5-6% bite out of whatever appreciation the property has enjoyed. Chasing $8,000 isn't a good idea unless you plan to live in that home for a long time.

Comment by Nate 21 Sep, 10:27 PM
I am hoping the credit won't be extended. I live in Northern VA and was very excited about the credit and the prospects of purchasing my first home. However, I quickly discovered that every home in my price range was being sucked into a bidding war with multiple offers. Also, the increased demand is artificially driving up prices - creating pretty much the same situation that got us into this housing crisis in the first place. It seems that every house I found had an asking price of more than it was worth, ant the crazy thing is - we were out-bid by people paying higher than the asking price!!! Maybe it's just me, but I REFUSE to pay 10 -30k more than a house is worth - just so I can get an 8k dollar credit. I hope this madness ends soon.

Comment by Stacey 22 Sep, 08:30 AM
YES YES YES

Comment by KW28 22 Sep, 07:07 PM
After being laid off in 2006, I was forced to relocate to find a new job. We place our house on the market just after the housing market went south, finally selling it in January, 2007. While on the new job, I developed heart problems and was forced to retire. Of course, like many others, my 401K practically disappeared during the same period and I am now on a relatively fixed income and a not very large one. Under these circumstances it will be impossible for us to purchase a new home unless the tax credit is extended/expanded. We are not even eligable until January, 2010

Comment by Sully 23 Sep, 08:10 AM
I am hoping and praying that Obama extends this credit! I have been searching for a house in the Las Vegas valley. The prices on the houses are in the budget but there are so many investors out here that I cannot compete. Unfortunately, the time between placing an offer on a house and the feedback vary greatly! I have had 4 weeks go by without a word about a foreclosure and other times it has been 4 hours. If I cannot find a house in the next few days, I will not get the $8,000 credit and will not buy a house. PLEASE extend it!!!!!

Comment by Kassie 23 Sep, 12:37 PM
Yes, definitely it's going to help in buying a new house if tax credit deadline is extended. There's lof red tap involved in buying the property particularly foreclosed n short sale properties.

Comment by Abdul 23 Sep, 02:42 PM
My girlfriend and I have a son and we are looking to buy as well. We just need few more months to find a house that we truly desire. (She is picky)

Comment by Keith M 23 Sep, 02:45 PM
I am in tears writting this. I want to buy a home so bad and I am in the process of it now but it looks like I will not make the deadline unless it is extended. I pray that it will be for the sake of my husband and child. Please Obama if you read this do us all a favor. I will have to back out if I do not receive the credit b/c I will not have the money to paint, fix floors or any other tlc a used home will need. Good luck All, and God Bless

Comment by Ashlie 24 Sep, 03:10 PM
absolutely hope it gets extended. It took me 8 years to clean up my credit and raise my score enough to get a loan. I have managed to save 13,000 and plan to use it to purchase my first home. I feel very rushed to do so and would rather purchase the right place rather than settle because of the deadline. It has been a long hard road for me and my kids and I feel like we deserve a nice place in a nice neighborhood. Its hard to concentrate when you feel pushed because of the time frame. If we miss out I probably will continue to rent.

Comment by C. 24 Sep, 08:28 PM
me and my fiance' are in the process right now of having our house built but can not close till november 24th for personal reasons but this is our dream home and we would love to be able to take advantage of the $8000 tax credit especially since we are also going to be expecting our 2nd child that exact same month....I would hate to have a new home and new child and not have that extra little break we are so dsperately needing....I hope and pray everyday that obama extends it...........plssssssssssssss.......

Comment by TT 27 Sep, 01:53 AM
My husband and have put in offers for 16 homes in the last 2 months but have been outbided on every single one of them. We are devasted because owning a home is our dream and the tax rebate will help us out tremendously to fix up the house since we are looking at distress homes. Moreover, the banks are giving us a hard time, not responding on time, not willing to pay for closing, and requiring to cross qualify with their own lender makes it so difficult for us to make our dream come true. I am praying that Congress will extend the deadline so that we have more time to make our dream a reality.

Comment by Gia 27 Sep, 05:36 PM
I am looking forward to becoming a First Time Homebuyer, in the State of Delaware. I find it hard to make a decision on my first investment and truly don't want to jump into something I will regret later just because time is running out....I always sing my song...TIME IS ON MY SIDE..YES IT IS. OBAMA PLEASE GIVE AN EXTENSION.

Comment by Teena 28 Sep, 11:00 PM
My husband and I have both lost our jobs. We want to sell our home and be able to get at least what we owe on it, around 90,000. Homes in this price range will sell quickly if extended. We need this to move and take a job in another state. PLEASE EXTEND IT AND MAKE AVAILABLE so we can also buy another house when we move... since we are not 1st time home buyesr but need a break, we have had to live on our 401Ks.Come on....

Comment by Sherri 29 Sep, 02:51 AM
Please extend the tax credit. Do not let us buy homes where we are not fully satisfied just to take advantage of the tax credit.

Comment by Geovany 30 Sep, 08:21 AM
If the tax credit is extended that'd be great for me and my husband , we are in the process of repairing the credit issues we have in order to get financed.

Comment by Rod & Marauda Rice 1 Oct, 10:19 PM
We just found the perfect home, but need an extension for the $8000 tax credit.

Comment by Andre M Amaya 5 Oct, 03:27 AM
I am in the process of closing on my house, I hope he does extend it for I will need a little more time, it stinks that in new york, they will not allow you to utilize the credit for the down payment, that is the snag for us, so I hope he will extend the dead line!

Comment by Eric 5 Oct, 01:47 PM
I am buying a home, but unfortunately, I may be a week or 2 late on my closing date. Obama, please extend it!

Comment by E Mike 5 Oct, 01:58 PM
Yes, I'm in the process of getting qualified to purchase a home. I'm not sure if I'll may the November 30, 2009 deadline. I'm keeping my fingers crossed that it will get extended. If not, I might just put off buying a home for another year.

Comment by Lynne 5 Oct, 02:41 PM
I would LOVE for the tax credit to be extended. We have been searching like crazy for the right place for almost 4 months now and its been tough knowing that the cutoff was so soon. It would really allow us to relax a little.

Comment by Tim 7 Oct, 01:27 PM
Yes. My husband and I have been trying to qualify for a home for a while. Due to credit issues we haven't been able to qualify until now. We haven't been able to find a home in the right area for the price we are looking for. If he extended another 6 months at least that would be perfect for us. President Obama you would be doing the right thing.

Comment by Regina 7 Oct, 06:52 PM
Me and My husband pray that Obama will also extend the First time Homebuyers credit as wel. We are working so hard to save the need money and clearing up our credit so that we can take advantage of this too. We were unable to take advantage of this this year. But we have been preparing ourselves to purchase a home to this up coming year. We are working so hard to be able to do this. Obama Please!!!! extend the tax credit. This wil be a blessing to be able to use this as a down payment and just have to pay our closing cost. this will certainly help full-fill our dreams of becoming first time home buyers.

Comment by Laura Smith, Milwaukee, WI. 7 Oct, 09:09 PM
Yes, the tax credit being extended would definitely be a big help to me. I am now a single mom and I am approved for a house through a grant program but trying to purchase a home and get everything straight before the deadline is kind of tough. I don't want to get a home for me and my girls that we are not happy in and besides it is a lifelong investment that I want to be proud of. An extension would be appreciated!!!

Comment by Donyell M. Brown of Houma, LA. 9 Oct, 04:04 PM
PLEASE extend the deadline, better yet offer a tax incentive for all home buyers! This I feel will likely help the market out of a slump and create more incentives for buyers to get off the sidelines.

Comment by JCB 12 Oct, 08:51 PM
I am hustling to buy a home before the dealine. Expecting a child in Dec., it would be nice to have a home before he gets here. I just found a job so I could not start looking before then. I know there is a lot of red tape but I m still going to try. I do hope they extend the tax credit, $8,000 or any thousand early next year would ease some of the new born bills. The unemployment extension saved me and kept me a float these last 10 months. I do hope the tax credit is extended as I still am just surviving and the credit would ease some of the stress. You have my vote for extension My President.

Comment by Mark O. 13 Oct, 05:17 PM
Yes, we have spent all year getting into a position to buy the house we live in only to find the banks are so stringent that it is difficult to qualify. We need more time, it's as simple as that. Obviously the program is working so why not extend it until it is no longer providing enough results to justify it? Tell congress to PLEASE extend the credit!

Comment by Dewey 15 Oct, 09:40 AM
we have been looking for a house and its really hard to find the one we really want since it will be the only one we will buy. like everyone else is saying its hard to close by the deadline. we ask congress and pres. obama to please help us out. without their help we will not get the tax credit and its almost like oh we can get 8,000 in tax credit but Hello takes so long for banks and loans to complete the sale. we have already been approved just looking for the right house. SO PLEASE READ OUR BLOGS AND HELP US OUT... WE NEED OUR CHANCE ALSO THANK YOU

Comment by CONNIE 19 Oct, 03:45 PM
Yes, please extend the credit!

Comment by ST 19 Oct, 10:50 PM
i would like it to be extended. My wife and I have been looking for a home for 4 months now and haven't found the right home yet. We don't want to settle just to get a rebate. On the other hand if we find one today, we don't know whether we can close in a month and 11 days. Highly doubtful. I think because of all the short sales and hurdles with available credit they should extend for 6 months. Open the market up for all home purchses for 6 months, and that should help with some of the short sale situations that are pending now. Although i do know a friend who has been waiting 8 months and will miss the deadline due to short sale. The country can't afford to keep extending the rebate forever, but 6 months would open up for alot of real estate to be purchased for primary, secondary and investment purchases. As long as banks make sure the buyers credit, DTI and employment record are credible, we won't see another foreclosure boom.

Comment by chris c 20 Oct, 02:05 PM
I really would like to see this extended I have worked so hard to position my self for this opertunity This would help so many families across this great nation Thank you so much Mr President

Comment by Robert Hood 20 Oct, 03:02 PM
I am going through a program and it is taking time for them to process. I finally found my dream home and got my contract finally accepted by the builder. I dont think I will make the deadline which for me will hurt due to I am single and I work hard and this is my first home. I pray they extend it cause I can benefit. This is a dream for me vs renting due to the last renter I just rented from foreclosed leaving me 30 days to move out while I am waiting to process by home buying purchase.

Comment by Shanice Murray 22 Oct, 07:25 PM
YES!!! I put an offer in on a short sale home and have to wait for the response. It is HIGHLY likely that I won't receive a response by the deadline and so would have to settle for a lesser home that needs more work or no home at all. I'm not sure I can afford to buy without the tax credit! PLEASE EXTEND!!!!!

Comment by Garrett 23 Oct, 03:26 PM
President Obama, I am not sure if you will get this or not, but the home I was in the process of purchasing belonged to my aunt. She was very precious to me. I used to live with her for awhile during a time when things were hard going. She took me in without any questions or judgement. She passed away two years ago from Alzheimer's and her son who now owns the home has just suffered a stroke (aneurism), so now everything is on hold. As of now, I am unable to discuss the purchase of the house with my mom or my aunt so I am praying for the extension. It would mean so much to me. Thank you,

Comment by Kim M 23 Oct, 05:24 PM
my son is trying so hard to finish closing before the 30th of November, but the mortgage company keeps going slower and slower. Because this was a HUD home, he is having a hard time so I am hoping and praying the time will be extended for the honest people trying to legally buy a home. Lord knows there were a lot of scammers and I hope they get caught. Please consider an extension. Thank you! Sincerly, dc

Comment by Donna 3 Nov, 01:22 PM
my son has been trying so hard to finalize on a home he is buying . Something keeps coming up they need this and that well looks like everything is rolling finally after 5 months only closing looks almost impossible by the 30th. I am hoping you would consider extending the deadline for people who are honestly trying and the loan officers are taking there sweet time. Thank You

Comment by donna c 3 Nov, 02:14 PM
HECK YES!

Comment by Littlemisspriss84 3 Nov, 08:56 PM

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