Are Home Buyers Going To Get $15000 Tax Credit To Buy A House?

Chandler, AZ – June 16, 2009 – $15000 tax credit to buy a home? Not yet, but soon it might be the case that home buyers will get up to a $15000 home buyers tax credit for buying a home. According to the Mortgage Bankers Association and Senator John Isakson, a larger home buyer tax credit would go a lot further in stimulating the housing market which in turn would stimulate the US economy.

Sen. Isakson believes this to be the case so much so that he has introduced new legislation into the US Senate. His bill, Senate Bill 1230, is called the Homebuyer Tax Credit Act of 2009. Sen. Isakson’s bill has been endorsed by the Mortgage Bankers Association in this letter: MBA Endorsement of SB 1230.

The following is a summary of the HTCA of 2009:

• The $15000 tax credit would replace the $8000 first time home buyer credit which is currently authorized by the American Recovery and Reinvestment Act of 2009.

• All home buyers, not just first time home buyers would be eligible for the home buyer tax credit. Currently, only first time home buyers can claim the $8000 home purchase tax credit if they buy a home before Dec 1, 2009.

• Extend the time period of the home purchase tax credit into 2010 depending when SB 1230 passes if it gets passed.

• Eliminate the income caps that are currently in play with the current first time home buyer tax credit.

Yes BUT, I Need Down Payment Money Now…

Gee wouldn’t it be great to get $15000 to buy a home? Indeed it would, but the SB 1230 falls short of its intended housing market correction possibilities due to the fact that it does not make the home purchase tax credit available at closing time when the home buyer really needs the money. Not that they won’t need the money next year at tax season, but one of the biggest hurdles to home ownership is down payment money. Many people are running short on cash while at the same time they make excellent homeowner candidates.

Hopefully if the bill gets passed part of the negotiation process will include putting in a provision that allows qualified home buyers to get their tax credit early at their home closing. Stay tuned for further developments.