It actually looks like we could be on the verge of hearing about the new tax credit proposed in the Legislation. The current tax credit is 7,500 and although it has been called a tax credit, it is actually a loan. The 7,500 must be repaid. Unlike the new proposed tax credit bill which would provide a direct tax credit to ANY homebuyer who purchases any home. The amount would go up to $15,000 or 10% of the purchase price, whichever is less. It does say that home purchases must be made within one yearof the bills passing, but the REALLY BIG NEWS is that the tax credit would not have to berepaid. You would be able to claim the credit on your 2008 income tax return. It does specify however that this must be your principle residence and the government will recapture the credit if the home is sold within 2 years of the purchase. This is such great news for homebuyers that have been sitting on the fence. It is everybody's hope that along with the ever falling interest rates buying a house, especially if you are a first time buyer would be more attractive than ever.
I wait with baited breath to hear this has passed. I know many of my clients have been on the fence and this could be a great incentive. I'll keep you posted as I hear more.
Heather@HeatherandSarah.netSarah@HeatherandSarah.net244 Redondo Ave.Long Beach, CA 90803