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Late yesterday, the Homebuyers Assistance and Improvement Act of 2010, a standalone Bill, passed the US House of Representatives. This bill extends the closing date for the First Time Homebuyer Tax Credit qualification to October 1st, 2010. Although a vote is anticipated very soon, the Bill still needs to pass the Senate in order to take effect.

This provision was previously a part of a separate bill designed to extend unemployment benefits and close tax loopholes, but ran into trouble in reconciliation as members of Congress raised concerns over the price tag of the bill and the increased taxes that would result from its passage. Countless messages have floated around the Internet and email loops reporting erroneous information that the extension had been passed and implemented.

This bill only applies to home buyers who were under contract to purchase a home by April 30, 2010. If passed by the Senate, it will allow them additional time to close on their home. The backlog in mortgage loan processing led to delays that may have threatened a homeowners eligibility to claim the $8,000 First Time Homebuyer Tax Credit, or the $6,500 tax credit for repeat home buyers who had been in their current home for at least five years. It has been reported that up to 180,000 homebuyers will now receive the tax credit they deserve, and our housing market will be strengthened as a result.