In a nod to active members of the armed forces, certain provisions have been included in the latest extension of the homebuyer credit. Military members who serve at least 90 days outside of the United States during 2009 and 2010, are allowed to extend the benefit one year meaning that they have until May 11, 2011 to contract on a primary residence. According to Military Relocation News, more than 350,000 families will be eligible to participate in the Service Members Home Owners Tax Act. This is very important to the Colorado Springs and El Paso community since so many of the residents are active military .
A second benefit in the bill, modifies the penalty associated with minimum length of stay in a home so long as the reason for moving is related to said a military ordered relocation. Typically, the home must be owned for at least three years or the homeowner would be forced to pay back the credit. This will not be the case for active military. The bill also expands Homeowners Assistance Program temporarily with $55 million in funds. HAP assists military personal who are at risk of financial peril due to the sale of house at a personal financial loss. HAP is critically important at this time given the difficulty local real estate markets have faced over the last 24 months.
