The rescue housing bill has finally passed the House and Senate. President Bush is expected to sign it into law. There are many aspects of this bill, some good, and some not so good. Looking over the highlights, there is one that will in my opinion, make an immediate impact:
From the WSJ On-line addition:
It also includes tax relief for future homebuyers and current homeowners. First-time homebuyers purchasing a home between April of this year and through June of next year would receive a tax credit for 10% of the value of their home, up to $7,500, while current homeowners who do not itemize their tax returns would be able to deduct up to $1,000 for property taxes.
A tax credit of this size will certainly encourage first time homeowners (those who can still qualify for a loan) to get off the fence and take the plunge. Hopefully, realtors and mortgage bankers will do a good job advertising this provision.
There are many more provisions in the bill that may or may not help the industry, but one thing is for sure, the rules of the game have changed.
Visit again over the next couple of weeks, as I will highlight other provisions in the law. Its vital to stay abreast of the changes that this law will no doubt bring to our industry.
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