Rhode Island first-time tax credit close to being extended.

Posted by Lynda Mckenzie
October 30, 2009

Homebuyers looking to purchase a home in Rhode Island, may soon be able to take advantage of an extended tax credit, and it may not be just for first-time homebuyers.

The National Association of Mortgage Brokers (NAMB) continues to monitor legisilation for the $8,000 first-time homebuyer tax credit, which is anticipated to be extended until April 30, 2010.  The Obama Administration has urged Congress to pass legislation to extend the program from its original November 30, 2009 deadline.  In addition, legislation may provide a $6,500 tax credit for some current homeowners but has not been finalized and should be voted on next week. 

“We welcome efforts taken by Congress to extend the first-time homebuyers tax credit for a limited period,” said Treasury Secretary Tim Geithner and U.S. Department of Housing & Urban Development (HUD) Secretary Shaun Donovan in a joint statement. “This credit has brought new families into the housing market and contributed to three consecutive months of rising home prices nationwide.”

The deadline for first-time homebuyers to claim the $8,000 credit would be pushed back to April 30, 2010.  The Senate agreement stipulates that buyers must have a sales contract on a house from December 1, 2009  to  April 30, 2010 to be eligible, but it gives them an additional 60 days to close the purchase. (June 30, 2010) Under the current credit, first time homebuyers must be closed by November 30, 2009.

Other changes in the Senate agreement would be an increase in the income limits to $125,000 for a single borrower and $225,000 for a married couple that file jointly.  Current income limits are set at $75,000 and $150,ooo. 

Additional provisions in the new agreement would be an “anti-fraud” feature.  Borrowers would have to be a minimum age of 18 years and attach a HUD1 to their tax returns, proving they actually bought the house. 

The new agreement is part of the Senate unemployment extension bill and still needs to be voted on.

 In the meantime, if  you are a first-time homebuyer and would like to take advantage of the current $8,000 tax credit, please contact me immediately as there is little time left or visit my website at www.mortgagemasterinc.com/lmckenzie to apply. 

Lynda Mckenzie
Mortgage Consultant
Mortgage Master, Inc.
Direct:  401-524-9796
E-mail:  lmckenzie@mortgagemasterinc.com
NMLS#137627/RI license# 137627
RI Loan Broker 95000655 LBB01/ RI Lender License 2005 1876LLBo1

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