Most real estate agents across the country have seen a positive impact from the new Federal Government program to grant an $8,000 tax credit to first-time buyers. This money does not have to be repaid if you own your home for at least three years. It is payable to the homeowner, even if they do not owe $8,000 in taxes (like a rebate check) and can be filed with either your 2008 or 2009 tax return. To be eligible, you must satisfy income requirements and close on your home on or before December 1, 2009.
This is by far the best economic stimulus program so far produced by the U.S. Government to help ease our current economic downturn (much more effective than handing money to the banks). Unfortunately, for an estimated 50% of eligible participants who do not have downpayment funds, this program does not go quite far enough. These potential buyers need access to the $8,000 in order to fund their downpayment and closing costs at closing-- they cannot wait for the tax refund.
So far, 10 states have stepped up with programs to address this need. We should congratulate Missouri for being the first to be responsive.
Colorado's "JumpStart" program began 14. Delaware, New Jersey, Tennessee, Idaho, Washington State, Ohio, Pennsylvania and New Mexico have since approved similar programs.
Fiscally sound, these programs recognize both the impact to the state economy, in terms of direct tax revenue and indirect additiional sales tax on appliances will more than offset any costs to administer such a program. They can be funded through a modest interest charge on this one-year second mortgage.
Please urge our governor and legislature to respond to this need quickly, Maybe they can work on this together as a first step towards handling our state budget issues together! Help Connecticut to be the 11th state to help the first-time home buyers (and help our state's economy at the same time),
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