The deadline for the First Time Homebuyer tax credit has been extended for all binding purchase agreements.

The Homebuyer Assistance and Improvement Act, which expired April 30, gave first time homebuyers a healthy tax credit.  Previously, all contracts that were signed prior to the end of the Act were given a deadline of June 30 to close.  The new deadline for binding contracts is September 30.

The new deadline was signed into law earlier this month by President Borack Obama.

The act was first established to help boost the slumping real estate economy.  First time homebuyers were given a tax credit up to $8000.  Repeat homebuyers could also qualify for a tx credit of up to $6500.

The tax credit recently echoed it positive effects on the market when home purchases plummeted nationwide following the Act’s April 30 end.  Experts say that the credit, along with record low interest rates, proved to be very enticing to first time homebuyers.

All qualified homebuyers must file Form 5405 and attach a copy of the binding sales contract.