It’s official – Congress has extended HR-5623, the first time and repeat home buyer tax credit! Assuming President Obama signs the extension, Chicago buyers with signed contracts will gain an additional three months, until September 30, to close on their homes. The previous tax credit allowed first time homeowners an $8,000 credit and repeat buyers a $6,500 tax credit, however contracts were required to begin by May 1 and close by July 1.
Home buyers rushing to meet the July 1 deadline created a backlog of mortgage applications, resulting in delays. According to The National Association of Realtors®, nearly 180,000 Americans, 7,030 from Illinois, were anxiously hoping for an extension. Tax credits for home buyers began being offered in 2008 and have benefitted from numerous extensions. Will any be granted beyond September 30? Time will tell, but if you have a signed offer, be grateful for the reprieve and don’t delay finalizing your Chicago home purchase.