$7,500… $3,750 if You’re Single!

The new housing bill isn’t as much of a rescue as it turns out to be, at least for the proposed tax credit. The bill introduces a $7,500 tax credit for first time home buyers ($3,750 for single people) who purchase before July 1, 2009. As a matter of fact, the tax credit isn’t a credit at all. It’s actually a loan. A zero percent loan, but a loan nonetheless. Anyone who chooses to take advantage of the credit has to pay it back in 15 years via their federal filings. To me this is a round about way of offering down payment assistance without coming right out and saying it. No...you can’t use the credit at closing but you can use it during tax time. Even if you purchase a house in 2009 you can use the credit on your 2008 tax return by filing an amended return.

The National Association of Home Builders believes the credit will jump start the housing industry and get some potential buyers off the fences and into a new house. Once again, my stance is why can’t the government just keep the down payment assistance programs? I think that will be more effective than the tax loan…I meant credit.

For more information on the tax credit check out this site launched by the National Association of Home Builders, http://www.federalhousingtaxcredit.com./


As always feel free to post your thoughts!

Damien

"With Wealth, comes Responsibility!"  Matthew 25:14-30