Although civilian homebuyers may no longer be able to receive their government tax credits, military homebuyers still can. The first-time and repeat homebuyers tax credits have been extended for certain military members, but time to take advantage of the extension is running out. April 30th is the deadline!

Congress initially extended the homebuyers tax credit to veterans and active duty service members who served overseas for at least 90 days from January 1, 2009 and May 1, 2010. The tax credit extension was granted by Congress because of the program’s initial time constraints prohibited military members who were ordered to serve overseas from receiving the tax benefit.

Congress has once again extended the tax credit to military members; however, the deadline is rapidly approaching. In order to receive the tax credit under the one-year extension, military homebuyers must enter a binding sales contract before or on April 30, 2011 and close on their home by June 30, 2011.

To have eligibility for the tax credit extension, military members must have served on “official extended duty.” “Official extended duty” is defined as 90 days of overseas service occurring between December 31, 2008 and May 1, 2010. If a military member could not complete 90 days of overseas service because of medical reasons, he or she may also be eligible for the one-year tax credit extension. Military homebuyers tax credit applicants must also be “a qualified service member” to be eligible which means they must be a member of the U.S. armed forces, foreign service , or of the intelligence community.

Finally, for veterans and active duty service members wanting to take advantage of the tax credit extension, they should consider financing their home purchase with a VA home loan. This type of loan is a VA-insured benefit that affords service members the opportunity to achieve affordable and easily accessible financing for their home purchase, and can be secured relatively easily and quickly. Also, when used in conjunction with a first-time or repeat homebuyers tax credit, a VA home loan can save a borrower thousands over the life of their loan.

If you qualify and have not yet found a home – contact Damion Flynn or search MLS right here on this site.

Veterans’ Day is a time which many Americans spend proudly remembering and honoring the service of our nation’s military members. However, in lieu of celebration, many Americans forget the current homelessness crisis many of our nation’s veterans and current active duty personnel now face.
In late September, Representatives Tim Walz and John Boozman introduced the Veterans’ Homelessness Prevention and Early Warning Act of 2010. The bipartisan legislation addresses increasing veteran homelessness by implementing a stronger level of VA support for veterans and active duty service members facing foreclosure on their VA loan.
“American heroes living on the streets, out of cars and on the couches of family members is a disgrace,” said Rep. Walz. “These men and women fought for our country and we must do everything we can to address their unique needs, which all too often are a contributing factor in homelessness amongst this population.”
Although, the VA does not own or service VA loans, the department is considered responsible for the loan as it guarantees each loan received by eligible military members. The VA’s guarantee is what provides military members and certain military personnel spouses with the competitive interest rates and mortgage terms exclusive to the VA loan, so long as the veteran or active duty personnel qualifies for this unique VA – provided benefit. The VA home loan program has experienced continued success in spite of the current mortgage crisis, however, still saw 15,145 VA loans foreclosed in 2009 – a number that has nearly doubled since 2007.
To reduce the likeliness of homelessness amongst veterans and active duty service members, the Veterans’ Homelessness Prevention and Early Warning Act of 2010 will mandate that the VA:
• Alerts VHA homelessness case managers within 7 business days of being notified of a VA home loan defaulting
• Ensures each VHA case manager can provide alternate housing for the veteran and his or her family should the veteran lose his or her home
• Submits a plan for the Act within 6 months of enactment, and will have the regulations in place within one year of enactment.

“Stable, permanent housing is the cornerstone of health and family – our veterans deserve nothing less,” stated Nan Roman, president of the National Alliance to End Homelessness. “This bill represents the first step in connecting all veterans to the support and resources necessary to achieve that stability for themselves and their families. I applaud Representatives Walz and Boozman for demonstrating urgency on this critical issue, and I look forward to their continued leadership to prevent and end homelessness for all our nation’s heroes.”

Guest Post By James Kelley:
James Kelley blogs on veteran’s issues and real estate in the United States at VA Benefit Blog .He also works for VA Mortgage Center, proudly serving American military families as the nation’s premier VA lender.