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???