August 12, 2008

New Home Buyer Tax Credit:: There is a Great Site

A newly launched Web site, has attracted more than 100,000 visitors, indicating strong interest among consumers. There are 4 million homes going into foreclose but this is a small but uplifting piece of news.

The recently passed bill will offer a $7500 tax credit to new home buyers. Here is some of what the site has to say.
At a Glance
  1. The tax credit is available for first-time home buyers only.
  2. The maximum credit amount is $7,500.
  3. The credit is available for homes purchased on or after April 9, 2008 and before July 1, 2009.
  4. Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit.
  5. The tax credit works like an interest-free loan and must be repaid over a 15-year period.
If you read the fine print this credit has to be repaid over time and is only forgiven of the house is sold at a loss, then the govt would write off the balance. This is hardly a dramatic incentive but the rules defining "new" home buyer as a buyer who hasnt owned in the last three years is not restrictive.

This bill provides for a loan rather than a credit and that its good for little more than a year and only targeting the middle income buyer. Its hardly a Roman candle and not likely to have more than a marginal impact on the housing markets.

Thanks for Reading

Howard Bell

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