New $15,000 Home Buyer’s Credit in Stimulus Package

This is exciting news for home buyer and real estate industry. The Senate may vote on the bill tonight, which includes a provision that would provide homebuyers with a tax credit of $15,000, or 10% of the home’s purchase price. Homebuilders have lobbied for a higher tax credit to increase demand and stabilize falling home prices after a $7,500 credit adopted last year failed to help the companies.

Congressional budget analysts project the program would cost $14 billion over the next few years. Senator Jonny Isakson said “If we can convince buyers to come back to the market place and buy these houses, then the houses aren’t vacant. It’s replaced by an owner-occupant, who is there making payments on a loan and helping all of the other houses around.”

Key Points in this Package:

1. $15,000 tax credit applies to ANYONE buying a primary residence during a one-year period beginning on the date of enactment. (1/1/2009 – 12/31/2009) and remain living there for at least 2 years.
2. For those who already qualified for $7,500 new home buyer tax credit. You are NOT eligible for the new program.
3. This $15,000 tax credit DOES NOT need to be paid back. Key distinction from the $7,500 first-time home buyer credit “actually a 17-year repayment which translates into a no-interest loan”
4. This $15,000 tax credit DOES NOT come with income restrictions.
5. You can use this credit for tax year 2008, “to file your taxes as if you purchased your home on December 31, 2008″ and could also go into effect as a credit on the following year’s tax return.

The market reacts to this exciting news in hopes that the new stimulus package will boost sales. An S&P measure of 15 builders rose as much as 14% to 234.60, the most since Nov 25. Forth Worth, Texas-based D.R. Horton Inc., the second biggest homebuilder by revenue, raised $1.07 or 13 percent, to $9.14. Dallas-based Centex corp., the largest U.S. Homebuilder raised $1.42, 15% to $11.16.

This is the best time to own a home!! With low home prices, low mortgage rate PLUS $15,000 tax credit that DO NOT have to be repaid. This is at prospective home buyer best advantage.

Contact a professional Mortgage Consultant with Nirvana Mortgage Services for more information and to get your approval process started today!  Call 301-423-7772 or email info@nirvanaservicesinc.com.