On Monday, October 5th, the White House came very close to endorsing an extension for the First Time Homebuyer Tax Credit. The White House Press Secretary said it had been a very successful program and is on a “shortlist” of measures being considered to help further bolster the economy in its recovery. The likely-hood for an extension of the Tax Credit has been significantly improved (as much as 90% likely to pass). There has been no indication
of the Tax Credit being revised that would increase the credit above the already available $8000 limit or offered beyond first-time homebuyers within the qualifying guidelines.

What does this mean?

1. Unless the Tax Credit provision is made a “stand-alone” bill or attached to an existing bill,
   a continuation in the program may mean there would be a lapse in availability for First
   Time Homebuyers, possibly in early December - since tax bills usually move at the end of
   the year (late December).
2. It is speculated that a steep drop in home prices may unravel as the current First Time
   Homebuyer Tax Credit is left to expire December 1st, further denying economic recovery.
3. If extended, the $8000 Tax Credit program would cost the government approximately $1
   billion for each month it is extended as talks are in place that would determine how long it will be extended.