Exciting News for First Time Homebuyers (And Anyone Who Hasn't Bought a House for 3 Years)

By
Real Estate Agent with Windermere Professional Partners

The President of the Washington Realtors, Greg Wright just shared this interesting article on Facebook. I know, he's so hip! Answering criticisms that all of the relief for the housing and economic crisis have been targeted at big banks and other large corporations, lawmakers are working on a bill that would make it possible for buyers to apply their $8,000 tax credit to their downpayment.

The proposal would make a federal tax credit for first-time homebuyers go farther by allowing it to be put toward the actual home purchase. A provision of the federal stimulus package offers a credit of up to $8,000 to buyers who haven't owned a home in the past three years -- buyers must also have incomes of no more than $75,000 for an individual or $150,000 for a married couple to qualify -- but it's a refundable credit. In other words, you don't get the money until weeks or months after the home purchase has closed. A budget proviso authored by the state Treasurer's Office and pushed by Sen. Steve Hobbs (D-Lake Stevens) and the state Realtors would set up a mechanism to get the tax-credit money to buyers at closing, removing the lack of a sufficient down payment as an obstacle. 
This is really exciting news.  The article goes on to talk about how the state will be ensuring that they get their money- but I thought this was interesting:
The state Realtors would put up $400,000 as security against unforeseen losses.
Now I know why my Realtor Dues are so high. Ah well, that's a good use for them!

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Comments (2)

Roy Kelley
Retired - Gaithersburg, MD

That would be a great move to assist first time home buyers.  It would work for many if FHA offered zero down payment financing to first time buyers that qualify for the tax credit.

Apr 15, 2009 07:00 AM
Ed Silva
Mapleridge Realty, CT 203-206-0754 - Waterbury, CT
Central CT Real Estate Broker Serving all equally

That's called being pro-active. It would certainly help a lot of people with their purchase, plus go a long way a lot quicker towards jump starting our industry. Please keep this updated

Apr 15, 2009 07:29 AM