Will There Be An Extension Of The First-Time Homebuyer Tax Credit?
I don’t know the answer to that yet but they are pushing for it. And some feel the current one isn’t large enough. I am not sure if I agree with that part of it. One of the reasons we got into this housing mess is because borrowers didn’t have enough skin in the game. This is backed up by the down payment assistance programs that have gone away that had a very large default rate on them.
“Worried that rising mortgage rates could damp the prospects for a housing recovery, a business group is making a new push for Congress to boost and extend a home-buyer tax credit.
In February, Congress approved a 10% tax credit for first-time home purchases, up to a maximum of $8,000. The credit, which expires Dec. 1, phases out for buyers with incomes above $170,000 for married couples and $95,000 for individuals.
The National Association of Home Builders and other industry groups have long argued that the credit isn’t large enough to help reinvigorate the housing sector. Now the groups are being joined in their efforts by the Business Roundtable, an association of chief executives.”