The $8000 tax credit for new buyers using FHA-insured loans can be used for additional down payment funds or towards closing costs, and is set to expire November 30th. It has been very popular among first time home buyers to the extent of recent home sales to 1st time home buyers are estimated to be 40% of the market. There is talk from Senate and Congress of:
· extending the tax credit by the end of the year
· raising the tax credit to 15% or 10% of the home’s purchase price, whichever is lower
· removing income restrictions (currently available only to households making $75,000 or less)
· extending tax credit to ALL home purchasers, not just first-timers
· Estimates are that just upping the credit to $15000 would lead to 400,000 more home sales
Foreclosures weighing down many markets would be sold and absorbed. Let’s see if these ideas are passed and implemented.