Congress may extend the Home Tax Credit of $8,000 to June of 2009 for new home buyers. The tax credit of $6,500 has been allocated in legislation for existing home owners.

Initially new home buyers have until November 30, 2009 to take advantage of the new home tax credit offered by the government of $8,000. The New Home Buyers $8,000 tax credit my get a government extension until June of 2009 with a tax credit for existing home officers. New homebuyers and existing home buyers should talk with their home loan officers about the new government programs to get financial assistance in home loan modifications or financial help in buying a new home.

The government is possibly extending the $8,000 new home tax credit to accommodate the economy coming out of the recession. Although the measure has yet to be approved by Congress, there is talk of an home tax credit extension with the credit placed at $6,500 for existing home owners. The date of the extension is expected to be to June of 2009 although the Senate and the House of Representative have yet to approve the measure as the November 30, 2009 initial extension date is still in effect (As of this publishing date) The Senate and the House of Representatives may approve legislature to extend the tax credit that has caused a minor ripple in home sales even though foreclosures were not stalled as much as expected.

Real estate agents have been using the government sponsored program to entice new home buyers to close their housing deals. The $8,000 New Home Tax Credit is only available to new home buyers. The new $6,5000 home tax credit is for existing home buyers. The $8,000 New Home Tax Credit, however, is available to existing home owners if they have not owned a principal home residence within the last three years as reported up until November 30, 2009.

The New Home Tax Credit is one of the many programs the government initiated to boost the housing market that had down-turned after the creative financing techniques of previous home buying years. Creative financing such as Adjustable Rate Mortgages left many home owner’s owing more on the home loan than the equity or value of their homes.

To stimulate the housing market, the government issued an $8,000 New Home Tax Credit to new home buyers with an $1,000 incentive bonus to loan officers who offered programs to save the homes of existing home owners. The $8,000 New Home Tax Credit has been in effect as a home buyer incentive government sponsored program since February of 2009. Although the $8,000 New Home Tax Credit was introduced in February of 2009, it took a while for the new home buyers to take advantage of the incentive.

The Internal Revenue Service Reported that about 1.4 million new home buyers have benefited from the $8,000 New Home Tax Credit so far. Real estate agents nationwide have seen increases in home buying as a result of the lower priced housing market. In the eastern part of the country, the $8,000 Home Tax Credit has been effective with boosting the home sales of houses priced $200,000 or less.

The homes that are eligible for the $8,000 Home Tax Credit must be financed through Fannie Mae or Freddie Mac which are federal guaranteed government loans agencies. These two government agencies have also received a financial bailout from the government. The program that had real estate agents posting signs advertising the $8,000 Home Tax Credit for new home buyers will be coming down as of November 30, 2009 unless the proposed extension comes through. There is talk of extending the home tax credit to June of 2009. Housing contracts will have to be signed by mid October to get the closing mortgage paperwork completed by the November 30, 2009. Home buyers looking for tax credits should talk to their home loan officer for further updates to the government program provision for home tax credits.

Real Estate agents are saying the $8,000 New Home Tax Credit was being used mostly by homeowners who had considered buying a home before the new legislation went into effect in February of 2009. Home sellers in the housing industry had hoped to have more new home buyers enter the market because of the $8,000 Home Tax Credit. The real estate market usually slopes downwards at the latter part of the year in which the $8,000 New Home Tax Credit originally had its ending date. The extension of the $8,000 Home Tax Credit would be a great incentive to get those new home buyers into the housing market during that part of the home buying year when home buying usually lags.

A housing bill has been introduced in Congress by the National Association of Realtors to increase the $8,000 Home Tax Credit housing bill to $15,000 making it available to all home buyers. The bill is still on the floor in the Senate and the House of Representatives. There are no recent updates on the this particular tax credit only that news that the $8,000 and the $6,500 home tax credit.

Real estate agents are advising new home owners to not wait to buy a home in the anticipation of an extension of the $8,000 Home Tax Credit. They are advising new home buyers to take advantage of the present incentive before time runs out and to use it if they have been in the market to buy a new home. However, real estate agents are advising new home buyers to not wait for a bigger and better government housing program once the $8,000 Home Tax Credit expires. All indications are that even though the economy is coming out of the recession which is also good news for the housing market.

Real estate agents are saying that most home buyers are planning to forego buying a home if they miss the deadline of the $8,000 Home Tax Credit. The possibility of an extension on the home tax credit provides an incentive to stimulate the housing markets and to increase the housing market for new home buyers. Real estate agents are advising these new home buyers to enter the housing market regardless of the home tax credit because of the economy recovering from the recession. As the popular real estate saying goes: Now is always the right time to buy a home.

For more information on the home tax credit extension click on www.msnbc.msn.com/id/33522046/ns/business-real_estate/