$15,000 tax credit for buying a home? If the Mortgage Bankers Association has their way, along with the supporters of a new bill introduced to the US Senate called: Homebuyer Tax Credit Act of 2009, home buyers of all types could see a huge incentive to buy a home in 2009 and 2010.
It seems as though the $8000 First Time Home Buyer Tax Credit is not doing enough to stimulate the housing market such that Sen. Johnny Isakson, D-GA, has submitted the Homebuyer Tax Credit Act of 2009 that calls for a $15,000 home buyer tax credit which would extend the current time frame of the $8,000 tax credit for another year or so depending on when and if the HTCA is passed. Below are the highlights of the new bill introduced to further stimulate the housing market.
Key Provisions of the Homebuyer Tax Credit Act of 2009
- Unlike the $8,000 First Time Home Buyer Tax Credit, this tax credit would be eligible to all home buyers no matter whether they are buying their first home or a move up home.
- Expands the current $8,000 to $15,000 while continuing to make the home purchase tax credit a pure tax credit unless the home buyer moves from the home within the first three years of buying the home.
- Extend the time frame where this tax credit is available to home buyers. Currently, in order for first time buyers to take advantage of the housing tax credit, they must do so by Dec 1, 2009. This new housing bill seeks to extend the time frame for the new tax credit through Dec until 1 year from the passage date of the new bill.
- Remove the income caps of $75,000 and $150,000 that are currently in play with the $8000 housing tax credit implemented by the Bush administration and sustained by the Obama adminstration.
Will the Tax Credit be Available at the Closing Table?
Up for consideration is the possibility that the tax credit be available at the closing table instead of at tax time as is the case with the current housing tax credit. This will help home buyers who qualify according to their credit and income but lack the required funds needed for down payment and closing costs. The proposed bill could make it possible for the tax credit to be applied to the home buyer's home purchase at the closing table. If this happens, the housing market could get a big influx of home buyers.
Similar Bill Introduced In The House Of Representatives
The Home Ownership Moves the Economy Act of 2009 was recently introduced in the US House of Representatives. The House Bill - HR 2801 does not call for additional money for the tax credit, but it does call for the home purchase tax credit to be extended to all home buyers, not just first time buyers as well as extend the time period for the tax credit through the end of 2010.
Article written by Dale Stouffer. Dale has been a mortgage broker since 1996. He has a Masters in Urban and Regional Planning from the University of New Orleans and Bachelor of Science in Environmental Policy Analysis and Planning from the University of California, Davis. More information on Dale Stouffer can found at: DaleStouffer.com
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