San Francisco (Obama.net)- Prior to April 30th of 2010, all homebuyers who signed their proper documents had until June 30th to finalize the deals. By doing so, they would receive a tax credit via the United States Government.
President Barack Obama decided that this was not good enough on Friday. President Obama did the homebuyers an enormous favor by extending the deadline until September 30th. Thus, anyone who hasn’t closed the deal to purchase his or her home now has three more months to do so in order to benefit from the tax credit.
As mortgage rates are low, the housing market in the United Sates is still seeing rough times. By giving buyers an extra three months, Obama is essentially stimulating the market as much as he can without purchasing homes himself.
The bill went through Congress fairly quickly. The House of Representatives passed the measure on Tuesday and the Senate did the same the following day.
Obama’s tax credit provides $8,000 for people who are buying their first homes and $6,500 for citizens buying homes for their newfound primary residence.
The extension of the deadline provides an estimated 180,000 people who are in the process of buying a home a three-month window to finalize the deal amid issues with banks.
Even though some may see the move as an opening for fraud by people who try to doctor paperwork to make it appear as though they signed the contract prior to April 30th, it provides a fifth of a million people with a window to capitalize on the tax credit.
President Barack Obama has once again worked hard to pass a measure that will highly benefit the American people and help to stimulate the recovering economy.