Hal's Mortgage Blog

It looks like our servicemen will get a break as the House of Representatives unanimously passed a bill that calls for a one-year extension of the first time homebuyer tax credit for service members serving overseas.

In order to qualify, service men and women, members of the Foreign Service and intelligence community who served on official extended duty service outside the US for at least 90 days in 2009 (and their spouses).

The repayment penalty would be eliminated for first-time homebuyers if the service member sells his or her home within three years of purchase because of deployment. The bill passed the House 416-0, and is now in the Senate for consideration and is expected to pass there as well.

“I am pleased that Congress has decided to move forward to include my legislation in this homeownership assistance package for our service members,” said the bill’s author, Rep. Ron Kind (D-WI). “Service members should have every opportunity to succeed and enhance their life when they return home, and this bill will help them do just that.”

Many in the housing industry are calling for an extension and expansion of the $8,000 tax credit currently set to expire on Nov. 30, The Senate is considering a bill that would extend the credit for another six months.