First, this bill has not passed Congress yet - just the Senate. But what a hopeful sign for potential homebuyers. This is a real tax credit not a loan and is not limited to first-time buyers (as the recent $7500 "credit" was.)
Here' the bill At A Glance:
- Buyers would get 10% of the purchase price up to $15,000 applied to their tax bill
- It applies only to primary home purchases (to deter speculators)
- Anyone who buys a home within 1 year of the bill's signing would qualify
- If you've already completed a purchase, this bill won't apply
- There is no income restriction
- You can file the purchase on your 2008 income tax return
- You must live in the house for at least 2 years
- The credit applies to houses or condos
This bill is part of the larger stimuls package that was introduced by President Obama. Although passage may depend on shaving off some dollars, the National Association of Realtors is confident that the bill will pass with this amendment intact.
The hoped for result? Buyers who have been waiting for prices to lower even more may decide to buy now and apply the credit. And the heavy inventory that we are now carrying will start moving - to the relief of thousands of home sellers!