Mortgage Grapevine

homebuyer tax credit update

passed the Senate 98-0

House is expected to approve it in the next few days...could be ready for BO to sign into law by the weekend!

Senate approves aid for jobless, homebuyers - Yahoo! News

http://news.yahoo.com/s/nm/20091104/ts_nm/us_usa_economy_congress_senate

by XpressOH November 4, 2009 6:23 PM

Tax break for buying a home

The legislation also would extend the $8,000 homebuyer tax credit to contracts signed by April 30 and closed by June 30. The controversial credit, which many say has boosted home sales in recent months, was set to expire after Nov. 30.

The Senate's bill also created a $6,500 credit for those who buy a home after owning one for the last five years. That measure would apply to contracts signed by April 30 and closed by June 30. The current credit defines a first-time homebuyer as someone who has not owned a residence within the past three years.

The Senate bill would raise the adjusted gross income cap to $125,000 for single filers and $225,000 for joint filers. The amount of the credit currently begins to phase out for taxpayers whose adjusted gross income is more than $75,000, or $150,000 for joint filers.

"It's gonna put people back to work, the home builders, put people in the real estate business," said Sen. Chris Dodd, D-Conn. "The kind of jobs that can make a difference."

The extension will cost $10.8 billion over 10 years, according to the Joint Committee on Taxation.

http://money.cnn.com/2009/11/04/news/economy/Extending_unemployment_benefits/index.htm?postversion=2009110418

by TennesseeTuxedo November 4, 2009 6:34 PM

Tux-

I wonder how they are gonna word that for "non first time" homebuyers. I'm assuming some sort of requirement that the house being purchased is to be the buyers primary residence?

Otherwise, I see a TON of investors buying up houses!
by XpressOH November 4, 2009 6:42 PM

hm...now I'm wondering...so, if I bought a house 4 years ago, I'm screwed...can't use the credit, unless I sold it within a year, huh?

How bout the poor folks that bought 3 years ago and now want to "trade up"- they don't qualify on either end? I'm not really sure why they chose a 5 year window for current owners, but only a three year window for non-owners.
by XpressOH November 4, 2009 6:44 PM

Let's not over think this thing XpressOH.

I like the phase out period the way it's being proposed much better than a sudden stop at the end of a certain month like we were facing this month.

I've got buyer's going bonkers right now screaming at me because TN USDA is running 21 days issuing approvals.




by TennesseeTuxedo November 4, 2009 6:51 PM

How can it be a "sudden stop" when the end date was clearly stated?

Now it is possible that this program may never end and has created a new element of uncertainty.

This is just plan stupid.

Has anyone stopped to think what happens to home sales and values AFTER the program ends?

Talk about creating another asset bubble.


by NG November 4, 2009 10:59 PM

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