RUMOR HAS IT...

By
Real Estate Agent with Troop Real Estate Ventura

I heard from one of my lenders recently that we may know in the next week of the fate of the First Time Homebuyer Tax Credit. There are a few possible tweaks to the current system if they renew it, such as:

  • The current tax credit of $8,000 may be increased to $15,000
  • Income restrictions may be changed or eliminated. At this time the maximum income is $75,000 for a single person  and  $150,000 for a couple.
  • May be used by anyone, not just first time homebuyers. (Defined as someone who hasn't owned a home in the last 3 years.)
  • 6 -9 month extension after the new bill is in place.

There are, of course, pros and cons if this occurs. (Like how much money can we print?) But I don't believe anyone can contest the fact that the current credit has contributed in large part to the increase in sales over the last several months- at least in the Ventura Real Estate market- which is a crucial component in the economic recovery.

Rumors abound like sad tales and short sales what the "powers that be" have up their sleeves. Any scoop out there in AR land???

                                    

Comments (7)

Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate

Lynn:  All I have heard is concerns about extending due to all the fraud that resulted.  It will be interesting to see what is done with the tax credit. 

Oct 28, 2009 05:58 AM
Monique Lucas
BML Properties Realty - Mitchellville, MD
"...it's your move."

I hope the past fence sitters get off this time IF the tax credit is extended.

Oct 28, 2009 06:02 AM
Brian & Marie Spray
www.DFWAreaRealtors.com - Action Realty Group - Frisco, TX
Frisco TX Realtors

My guess is that they'll extend the current first time credit for 6 months.  I know there is a bill floating around DC to expand it to everyone and increase the amount but I really don't see that happening.

Brian.

Oct 28, 2009 06:03 AM
James K Barath, CMPS
Canopy Mortgage, LLC - Crown Point, IN
FICO Pro, Certified Military Housing Specialist

"A man should look for what is, and not for what he thinks should be." ~ Albert Einstein

Oct 28, 2009 06:06 AM
Anonymous
Tom Altieri

It sure helped home buying  in my state.

The senate leader Harry Reid proposed to extend it for another year to all buyers and fade it out through 2010.

Tom

 

<A href="http://www.newjerseymortgageguy.com">NJ first time home buyer</A>

Oct 28, 2009 06:07 AM
#5
Anonymous
Anonymous

I sure wish they would just tell us what there going to deal...

Oct 28, 2009 06:10 AM
#6
Lynn Kenton
Troop Real Estate Ventura - Ventura, CA
Ventura Real Estate

Kathleen, I'd hope that they put some safeguards in place to eliminate some of the slimy culprits!

Monique, We need to email, mail, call, track down with whatever means legal and in relatively good taste, the fence sitters so they see the merit to taking this step if it's within their means! 

Brian & Marie, Not sure how I feel about extending it to everyone, but it might nudge the move up buyers which are almost non-existant in our area.

James, Very philosophical! I guess that would be akin to not trying to put a square peg in a round hole:)

Tom, If that's the case, maybe my retirement plan can be moved up to 2011!!???!

Anonymous, Let's get out our Magic Eight Balls and be amused in the meantime!

Oct 28, 2009 06:22 AM