On Thursday, Senate Majority Leader Harry Reid (D-NV) co-authored a proposal that would give home buyers hoping to take advantage of the federal home buyer tax credit three extra months to complete their home purchases.

To qualify for the tax credit — $8,000 for first-time buyers and $6,500 for certain current homeowners – buyers must have signed a contract by April 30th and closed on their transaction by June 30th. Senator Reid’s proposal moves the deadline for closing transactions to September 30, 2010. The Senator and his co-sponsors hope to attach the measure to Senate’s tax extenders bill which is tentatively scheduled for a vote next week. MHI is part of a broad coalition that is supporting the extension of the credit, as well as “monetization” which would convert the tax credit to down payment assistance. Staff will monitor this issue and keep members apprised of any new developments.

MHI members with questions can contact Rae Ann Bevington at rbevington@mfghome.org.