The stimulus package before Senate keeps growing in scope. The latest addition: upping the tax break for homebuyers two-fold. Currently, first time home buyers (and those who haven't owned for a while) can apply up to a $7,500 credit against their taxable income. The Senate proposal is to raise it another $7,500.
As reported by the Associated Press, "The proposal would allow a tax credit of 10 percent of the value of new or existing residences, up to a $15,000 limit. Current law provides for a $7,500 tax break but only for first-time homebuyers."
Voting on the proposal is expected to take place Friday.
In other housing related news:
- D.R. Horton and Centex surprised Wall Street by reporting smaller-than-expected losses. Both were rewarded with a jump in trading and rise in stock price.
- Home sales improved in December. Lower prices appear to be enticing buyers.
- FNMA unveiled a plan to assist home buyers and investors. Buyers of FNMA bank owned homes are able to purchase with 3% down and no mortgage insurance. Plus, the home warranty is free. I've discovered, however, that the current interest rate currently exceeds FHA- making them slightly more costly. Time will tell whether this is temporary or long term.
Are you looking to purchase an Arizona home? Just give me a call at 480.292.0600 and we can explore your opportunities.
Chuck Willman is an Arizona based real estate agent. www.azVest.com
Photo Credit: "Capitol Place 2" by Harrison Keely