Obama Stimulus Package Fixes $7500 Tax “Credit”

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?

2 Comments on “Obama Stimulus Package Fixes $7500 Tax “Credit”

  1. If you took the credit in 2008 tax year, you have to pay it back. The new version appears to be retroactive to Jan. 1, 2009 where you will not have to pay it back.

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