Congress Considers “Fix Housing First” Tax Credit
In an effort to stabilize the housing market, Georgia Senator Johnny Isakson introduced S. 253, which seeks to expand the homebuyer tax credit passed by Congress last year. Instead of offering a tax credit only for first time home buyers that must be repaid over a 15-year period, the expanded proposal includes tax credits for all purchasers that do not need to be repaid unless the home is sold within three years. Included in the proposal are the following:
- Extending the eligibility period for the credit to December 31, 2009.
- Increasing the credit amount to 10 percent of the home price capped at 3.5 percent of FHA loan limits.
- “Monetizing” the credit so it is available at time of closing
- Allowing the credit to be used in conjunction with mortgages financed by state or local bonds.
