Homebuyers with contracts signed by April 30 who failed to go to closing by the June 30 deadline will now have until September 30 to complete their purchases. The House of Representatives on Tuesday approved the bill and it now goes to President Barack Obama for his signature.

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Below is a summary of the new modifications in the extension and expansion of the tax credit:

 1)  The $8,000 tax credit will be extended and available for first-time purchases before May 1, 2010.

 2)  A new $6,500 tax credit will be available for repeat buyers who purchase between December 1, 2009, and May 1, 2010. To qualify for this provision, buyers must have used the home sold or being sold as a principal residence consecutively for 5 of the previous 8 years.

 3)  Prospective purchasers with binding contracts in place as of April 30, 2010, will be allowed an additional 60 days to complete the transaction.

 4)  Income limits are expanded to $125,000 on a single return and $225,000 on a joint return.

For a complete summary of changes to the tax credit visit: NAR Issue Brief – Homebuyer Tax Credit

Under the American Recovery and Reinvestment Act of 2009, first-time homebuyers can qualify for the tax credit for purchasing their first home after filing their taxes.

But under a new Federal Housing Administration program announced Friday, state housing finance agencies and nonprofit groups can advance money to homebuyers up to the full amount of their tax credit so the money can be used on a home purchase, either to pay closing costs or to add to a down payment.

Read more of this article here.

The bill provides for a $8,000 tax credit that would be available to first-time home buyers for the purchase of a principal residence on or after January 1, 2009 and before December 1, 2009.  The credit does not require repayment.  Most of the mechanics of the credit will be the same as under the 2008 rules:  the credit will be claimed on a tax return to reduce the purchaser’s income tax liability.  If any credit amount remains unused, then the unused amount will be refunded as a check to the purchaser.

Frequently Asked Questions

Download the IRS First-time Hombuyer Tax Credit Form

Filing Options – Guidance from the IRS

The average 30-year fixed mortgage rate fell to 5.19% this week, down from 5.29% in the week prior, according to Bankrate.com’s weekly national survey.

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1. New York

2. Washington, D.C.

3. Charlotte, N.C.

4. Portland, Ore.

5. San Diego

5 worst housing markets

1. Las Vegas

2. Phoenix

3. Detroit

4. Minneapolis

5. San Francisco

Read the full article here.

“The great irony of a buyers market is that even though the opportunity to buy is high, buyer urgency tends to hit an all-time low. The media becomes the excited purveyor of negative news and uninformed advice, and buyers buy it all. Actually, it feels like the only thing they are buying. Their reluctance is ironic since not so long ago buyers were incredibly excited about buying – and it was a sellers’ market. Prices were escalating and it was perhaps one of the most difficult times to buy value and yet people were buying like there was no tomorrow. Buyers were afraid of losing out by not buying, even though the advantage was all to the seller.

Now a shift has occurred. Fear is still in the driver’s seat but the tables have turned – the fear of paying too much seems to stop most in their tracks. When they should have been afraid of paying too much they weren’t, and now that they shouldn’t be afraid of paying too much they are. It is one of the great paradoxical moments of any market and the herd instinct at its purest form. Reluctance in the face of great opportunity becomes an agonizingly defining characteristic of a shift.

There are two types of buyers – Those who believe they can time the market and those who are always in the market and believe timing will find them. History supports the latter – it says that if you are always active in the market, although you may never sell at the peak or buy at the bottom, you can buy right and will always do well over time. Logic says that you can’t predictably time the market to be able to buy at the absolute bottom and sell at the absolute top.

People who buy in a buyers market are the smart ones. They aren’t looking to make a killing because they know that is a matter of luck, not planning. They’re looking to make a sound decision with a predictable result and, therefore, ask the question: “Has the market dropped enough now to make a sensible purchase?” More often than not, when they are asking this question, they are already in the safe zone and the answer is yes.

Real estate is a cyclical business. All of this has happened before, and it will happen again. What goes up must come down. More important, what goes down has always come back up. Home values will most certainly continue their longstanding trend of appreciation over time. At the very least inflation will see to that. If you sell and then buy during a seller’s market, you get more when you sell and pay more when you buy. When you sell and then buy in a buyer’s market, you get less when you sell but pay less when you buy. It is always a lateral move as long as you stay in the same market place.

If you are waiting to see if prices come down even more, you are gambling that interest rates (currently at a five year low) will maintain or drop. What is not widely understood is the impact interest rates can have on the real monthly costs of homeownership. A ten percent drop in home prices is immediately nullified by a mere 1 percentage point increase in interest rates on a 30-year mortgage loan.”

We are currently looking for future homebuyers who are:

• Just starting the home-buying process for their first place
• Are fun, enthusiastic, and have a great story to tell
• Willing to share their personal & financial struggles with our viewers
• Looking to purchase within a 90 minute radius of downtown Portland
• Hoping to close before the end of Fall 2009

Candidates who are chosen for the show will also receive a housewarming SURPRISE gift at the end of shooting to thank them for being on the show!

Singles, couples and families are all encouraged to apply!

“My First Place” airs at 10 PM EST on Sunday nights and is produced by High Noon Entertainment in Denver, CO. You can learn more about High Noon Entertainment by visiting our website at www.highnoonentertainment.com.

Interested in being considered for the show? Contact Associate Producer Sara Adams at (303) 712-3125 or SAdams@highnoonentertainment.com