Congress Passes Extension Of Tax Credit Closing Deadline & Reauthorizes NFIP

Congress passed an extension of the Homebuyer Tax Credit closing deadline, the Homebuyer Assistance and Improvement Act (H.R. 5623). The extension applies only to transactions that have ratified contracts in place as of April 30, 2010 that have not yet closed. The legislation is designed to create a seamless extension. The new closing deadline for eligible transactions is September 30, 2010. There will be no gap between June 30 and the date the President signs the bill into law. NAR worked closely with Congressional leaders on both sides of the aisle to enact this important legislation. Extending the Tax Credit Closing deadline will help provide additional stability to real estate markets across the nation.

Congress also reauthorized the National Flood Insurance Program (NFIP) to write or renew flood insurance policies, which are required in order to obtain a mortgage in a 100-year floodplain. The National Flood Insurance Program Extension Act of 2010 (H.R. 5569), reauthorizes the flood insurance program through September 30, 2010. Without the NFIP, property owners in federally designated areas across nearly 20,000 communities nationwide could not obtain a mortgage or flood insurance to protect their properties.