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Possible Revised First-Time Homebuyers' Tax Credit

Posted by Jolenta Averill on Wednesday, January 21st, 2009 at 10:11am.

coffee cup with spoonGood Morning!
 
Obama's new Treasury Department is considering a revised version of the $7,500.00 tax credit for first-time homebuyers.  As you may recall, the previous law permits a first-time homebuyer to receive a one-time $7,500 tax credit which the homebuyer is required to repay over a 15-year period at $500.00 per year at zero percent interest.
 
The new proposal would keep the $7,500 tax credit intact, but would remove the repayment requirement.  In other words, the $7,500 would be received with no requirement of a repayment.  This is quite a different stimulus. 
 
Under the current proposal, the purchase would need to be made before July 1, 2009. 
 
We should know in the next 30 days whether this portion of the Obama Administration stimulus will be part of the overall package.
 
Keeping you in the loop!  Have a great day!

Hi, and welcome to our Madison real estate blog. Whether you're a consumer, journalist or Realtor, we encourage you to share your thoughts by leaving a comment. Here you'll find relevant local and national real estate information, as well as market statistics, insight, and information about a variety of neighborhoods and real estate listings. If you'd like more information about anything in particular, please use the contact form and I'll be happy to help.

Jolenta Averill, Principal
Lake & City Homes Realty
(563) BUY-SOLD

2 Responses to "Possible Revised First-Time Homebuyers' Tax Credit"

brian manola wrote: <!DOCTYPE html PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN" "http://www.w3.org/TR/REC-html40/loose.dtd">
<html><body><p>It would be great to see this stimulus given to all home buyers not just first timers. The incentive should be given to those of us who may want to move up, downsize or buy a 2nd home because all of these actions stimulate the economy.</p></body></html>

Posted on Wednesday, January 21st, 2009 at 1:43pm.

Jolenta Averill wrote: <!DOCTYPE html PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN" "http://www.w3.org/TR/REC-html40/loose.dtd">
<html><body><p>Hi Brian,

You make an excellent point. In fact NAHB (The National Association of Home Builders) coalition recently cited a similar plan that worked in 1975 when the nation was also in the midst of a recession. Congress then passed a short-term $2,000 tax credit for all new homes ($12,000 adjusted for today's median home prices) along with subsidized mortgage rates. The stimulus jump started the depressed economy and the effects continued long after the measure expired.

Jolenta</p></body></html>

Posted on Wednesday, January 21st, 2009 at 10:51pm.

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