The information on the tax credit for new homebuyers that is currently being considered as part of the stimulus plan is great news for anyone interested in investing in a house. 

This is subject to change until this officially goes into law, but as of right now, any homebuyer will receive a $15,000 tax credit when they file their 2009 taxes early next year.  They will receive that extra money, and as of right now, the government is not requiring you to pay any of it back.  The current $7,500 tax credit that this new one is replacing was required to be paid back, however this one will not!

To break down the numbers for you, someone can buy a $230,000 home and put down 3.5% through FHA, which totals $8,050.  We can estimate that the closing costs and escrow items will be approximately $5,000.  A person can buy a home this year for $230,000 and spend a total of $13,050.  They will be credited by the government $15,000 that does not need to be paid back (as of right now).  So they can buy a house, have it cost them nothing, and get an extra $2,000 back on top of having their entire expenses paid for.

So take advantage of this law if it is enacted and you will benefit all the way around.

Update 2/12/09 OK-- So never mind... the government decided that we don't need this part of the stimulous package and wiped it out. I have to say, that because Real Estate has been hit so hard with the state of the economy, I seriously have my doubts that they know what is best for our economy. Real Estate sales fuel our economy in many more ways then the obvious. Let's hope things improve soon............