Fix Housing First is a coalition of 600 organizations led by the National Association of Home Builders, are urging Congress to take quick and decisive action to stimulate the housing market and stop the decline in home values which will ultimately create more jobs and help lift the American economy. 

According to the coalition, this can be done through a significant tax credit and implementation of an interest rate buy-down for 30 year fixed rate mortgages.

THE TAX CREDIT:  In July,President Bush signed into law the Housing and Economic Recovery Act of 2008 which authorized a $ 7,500 tax credit for qualified first-time home buyers purchasing homes on or after April 9, 2008 and before July 1, 2009.  However, due to a wave of financial disruptions during September and October, the economy has worsened, credit has tightened further, and spillover to the general economy has been much deeper than anticipated.  This means a more robust economic stimulus package is necessary to get the economy moving again.

Specifically, a more significant credit is needed to enable families to buy homes and help strengthen the economy of their local community and the nation.  In the plan that the coalition is recommending, the credit amount would be substantially increased to 10 percent of the price of the home, up to $ 22,000.00.  Unlike the currant credit, it would not be limited to first time home buyers and the home owner would not be required to repay the credit.

THE INTEREST BUYDOWN:  The coalition is also recommending a mortgage interest rate buy-down which will help get buyers back into the market and further stimulate the economy. Interest rates recommended by the coalition range from 3.99 to 2,99 percent for home purchased before the end of December 2009.

The coalition also supports continued intensive efforts to prevent foreclosures. and keep people in their homes.  The combination of these stimulus actions would increase demand for housing, help stabilize home values, reduce foreclosures, restore and save tens of thousands of jobs and turn the housing and the economy back in the right direction.

For more information about Fix Housing First, visit www.fixhousingfirst.com  This article written by Fred Elsner, president of The Greater San Antonio Builders Association and appeared in The San Antonio News; posted by Don Eichler,Broker, with permission by Fred Elsner.