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Tax Credit Extension Idea

First, I am must state that I am in agreement that the Federal tax credit for purchasing a home should be continued.

But, I believe that the approached can be changed to benefit not only the buyers, but the government itself.

Currently as proposed, no one is required to pay the credit back.

Also, the credit comes back to people after they have bought and the problem most people have is to acquire the funds to buy.

My solution is that you give the people the funds directly for closing and that they pay the money back over a 10 year period, WITH interest so that the Treasury receives a "profit."

So, we don't have to raise taxes, people become more responsible more homes get sold, more jobs get created.

Anybody have a problem with that?

Posted by Fred Glick on 10/31/2009 09:39 AM

Comments (4)

Tax Credit in the Home Buying Channel

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4 Comments on Tax Credit Extension Idea

OCT

I have been proposing a federal closing cost loan program that could be incorporated into federally subsidized loan programs. That way over the course of the loan a portion of that amount is also paid back with interest. Not sure how it would work, but your plan isnt too far off. Thanks

In terms of having to pay it back, this is similar to the original tax credit that (in my exerience) didn't excite too many people. Changing it to an upfront credit eligible for down payment or closing costs might help but it seems like it could be logistically nightmarish.

Not to be Debby Downer or anything.

On the other hand, it could work beautifully at a much reduced cost...

@Julie

It would be hard to be a Debby Downer since you are a Judy. Ha Ha~

If you remember the timing of the first tax credit, people were still in total shock about the economy. Now, they are a little better in terms of consumer confidence and the job losses have slowed.

As for how it would work, I actually have a system in my brain that I am happy to share that would actually help to cut down on real estate and mortgage fraud in this country, a problem that actually still exists (believe it or not).

Call me and I can explain (215-852-4469).

Be well,

Fred

NOV

Hey Fred. Good to see you in the "Rain." Good idea too!!

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