The U.S. House of Representatives on Tuesday, just one day before the June 30th deadline, overwhelmingly approved a bill that extends the closing date for a tax credit for homebuyers.

The Homebuyers Assistance & Improvement Act of 2010 (HR 5623), backed by the House’s 409-5 vote, allows homebuyers whose letters of intent to purchase a home were signed by April 30 to get the appropriate tax credit if they close on the residence by September 30. This would be a three-month extension from the original June 30 closing deadline. The federal tax credit is up to $8,000 for first-time buyers and $6,500 for repeat buyers. The newly purchased home must be used as a primary residence.

The legislation was referred to the U.S. Senate. Late Wednesday night, the upper chamber approved the bill by voice vote. President Obama is expected to sign the homebuyer tax credit bill.

MHI members can contact Rae Ann Bevington at rbevington@mfghome.org.