Offlinetaken FROM CNN NEWS
The Senate's version of the plan sweetened the $7,500 homebuyer tax credit provision proposed by the House, doubling it to $15,000 or 10% of the home's purchase price (whichever is lower). What's more, the credit applies to all buyers - not just those purchasing their first homes.
The Senate credit also has no income limits. The House version, in comparison, allows only those with incomes up to $75,000 for singles and $150,000 for couples to qualify for the full amount. (In that bill, those earning up to $95,000 and $170,000, respectively, can qualify for a partial credit.)
Also, unlike the tax credit passed last summer as part of the Housing Recovery Act, this one does not have to be repaid. The old credit acted more like a no-interest loan than a true credit and, as a result, had little impact on home sales.
"This will bring pent-up demand back into the marketplace," said Jerry Howard, president of the National Association of Homebuilders. "We believe you can't effectively stimulate the economy until you find a way to stop the downward movement of home values."
"If you cannot do great things, do small things in a great way.”
Napoleon Hill quote
CNN reported yesterday and several other sources I have read that the bill has changed for the negotitations of the house and senate. New bill has a tax credit of $8,000 tax credit for first time homebuyers only. This will not be a repayable loan like the stimulus package of 2008 ($7500 tax credit). This should still stimulate the economy, but in my opinion it will not do as much. the National Association of Homebuilder (NAHB) is continuing to lobby for a larger amount, but time is running out.
nsherrick
Jason
I don't believe that the tax credit was intended for investors. The way I saw it was for primary residence. So, yes it could be used if you move into the home as a primary residence.
nsherrick
I been having so many different stories on this and don't know what is accurate. The story has been changing each day, but yes I agree that it will stimulate the economy.
"If you cannot do great things, do small things in a great way.”
Napoleon Hill quote
Just like you said....
Just checked CNN.com; Congress has passed the stimulus package with the $8,000 in tax credits for first time homebuyers. It will now go to Senate for a vote and then to the President if passed. Still can change, but then the whole thing starts over again. More than likely it will pass as written. I would have liked to seen the $15,000 written in. It was for all buyers using it for their primary residence. Would have done a lot more to stimulate the market. Makes deals look even better when you can take that kind of money away from the table.
nsherrick
Finally we have a signed bill and we can get to the point that it is not changing. Below is a NAHB website that explains everything with the first time homebuyers tax credit. Hope this is helpful.
www.federalhousingtaxcredit.com
nsherrick
Thanks for the useful information. I stayed away from the news and media for a few months... I'm in the works of buying my first property (duplex) as a first time home buyer. This is exciting news! lol