Late Wednesday night, the United States Senate approved to extend the closing deadline by three months to home buyers who are trying to get the tax credit.  To obtain the credit, buyers must have entered into a binding contract no later than April 30th, 2010 and close by September 30th, 2010.  The previous closing deadline was June 30th,2010, but some buyers didn't have enough time to get all the papers signed by all parties within that time frame.  Congress passed the new legislations in hopes that it will be enough time for all the transactions to go through.  The home buyer measure was passed with a unanimous voice vote and sent to President Obama, who is expected to sign it Friday morning.

It is important to note, this legislation only pertains to homebuyers who had an executed sales contract by April 30th, 2010.  It does not extend that deadline.  It only extends the expiration date for those that had a fully executed contract by April 30th, 2010 and gives them until September 30th, 2010 to close their loan.

Additionally, the Senate restored the National Flood Insurance Program Extension plan until September 30, 2010. This will allow transactions to move forward. It is retroactive to June 1, 2010 when it expired.