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Will the new housing bill help?

By
Real Estate Agent with Maximum One Greater Atlanta Realtors

One of the provisions of the new housing bill that is likely about to go into law is a $7,500 tax credit for first time homebuyers.  Unfortunatly, I feel like this is all smoke and mirrors and is flawed.  The problems are:

1.  It's not really a tax credit - from what I understand, the buyers have to somehow pay this back.

2.  Worse yet, the very people who will be most likely to be able to take advantage of this are also those who generally have the least amount for a down payment.  When you offer a tax credit and simultaneously take away the down payment assistance programs and raise the lending requirements it's like offering free gas to anyone who exclusively rides public transportation and doesn't own a car.

Dana Couch-Davis
Kendall Haney Realty Group - Memphis, TN
CRS, GRI, ABR, SRES

You are so right Matthew.  It is like the economic stimulus checks that the Bush Administration sent out in the beginning of their rule.  They were loans that had to be paid back.  It was a shock to many people.

Jul 30, 2008 12:07 AM
Anonymous
Pete Rundel

I am always a bit leary of laws that Congress decides to enact.

Generally, if it seems too good to be true, it usually is.

Now I haven't read the entire bill, and haven't heard what those that have studied it have to say about it, but I wouldn't be surprised if it's more smoke and mirrors than anything substantial.

I stand to be corrected, however.

Jul 30, 2008 12:11 AM
#2
Michelle Gordon
JH Realty Partners - Ada, MI
Finding Your Place

No it is not a tax credit, but a no interest loan...............however I do support it.  I work with many low to moderate income buyers.  The only positive thing about this bankowned world we now live in is that large families of low income can afford a home that will fit their family needs.........a qualified mortgage of 50 grand will buy you a home with 4 bedrooms.  But the house is going to be a REO and it is going to need work.  This "tax credit" is going to allow them to do the work necessary to make the home sustainable.  If the home was bought low, 7,500 investment in the home will be OK if they ever decide to sell. 

The fact this tax credit has to be paid back, I view it as giving people a step up, not a hand out.  Home ownership is important, and less rentals on a street is important.  If we take away these programs, more investors will buy, creating more rentals, or not so nice "flip" properties....... this is not what I want for our neighborhoods. 

I use the AmeriDream very often, selling for almost 7 years, None of my AmeriDream clients have lost their home to foreclosure..........they are all doing well.

 

Jul 30, 2008 12:23 AM
Anonymous
Dave - blogsomebody.com

I think this new bill will offer some relief. The speed of the relief will depend on some other factors too. For example the price of oil. If it stays low and keeps inflation from rising, then we will have a much better chance.  I also feel that this bill will only help people that are less than 50 K upside down. From what I have been seeing most banks are not interested in loosing more than 50 K, so they prefer to foreclose and then buy the house back themself. For more relate stories you can visit my blog. http://www.blogsomebody.com I am from South Florida and have a failed investment that I am stuggleing to hang on too. I do not want to ruin my credit yet.

 

 

Aug 13, 2008 03:48 AM
#4