This afternoon the Senate approved the new stimulus package. Inside the unbelievably huge, overwhelming varied bill, were a few tidbits for the housing industry.
The existing $7500 tax credit (that you have to repay btw) has been increased to $15,000 for first-time homebuyers, and the new version of the credit asks that the amount be claimable on 2008 and 2009 returns. Also, the new bill contains wording to eliminate the repayment requirement.
Higher loan limits for Fannie Mae and Freddie Mac and FHA are included as well. Oh yes, and how much did this monstrous bill cost in all? 838 BILLION DOLLARS.
Comparitively speaking, it sure doesn't seem that a great slice of the pie went towards the creation of new jobs...or the very tender housing industry. How about cutting taxes on small busiesses? I know...I know...every conservative cries this. But why is it so crazy? We can't spend what we don't make! I think this economic crisis has much more to do with job safety and creation then new FHA limits. They can make the limits as high as they want. That doesn't put actual money in anyone's pockets. And it shouldn't be doled out like candy at a birthday party. The dip in the stock market today said volumes. Sorry politicians---business owners and operators don't buy the noodles-on-the-wall approach to 'stimulus'.
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