According to the email just sent out by NAR President Charles McMillian, the approved Obama Stimulus package fixes what the government was calling a credit but was really a loan. It also says that the credit, now a true credit, raises to $8000.
Smart Money does a good job of Explaining What it Means to You:
What the plan promises: Prior to the plan’s passage,
first-time home buyers who bought a house between April 9, 2008, and June 30,
2009, received a tax credit of either up to 10% of the home’s price, or $7,500. The hitch: The credit had to
be paid back over 15 years. Now, as part of the stimulus,home buyers don’t have to pay the money back — and the credit is extended to
those who buy a home through the end of August. The credit could also
potentially be larger, moving from a maximum of $7,500 to $8,000, although this
new figure isn’t set in stone yet.
The biggest drawback: First-time buyers who used the credit in 2008 still
have to pay it back over a 15-year period.
Smart Money asks if that is enough to get buyers off the fence?