Tuesday, April 28, 2009

Understanding the Obama Housing Stimulus

Everything sounds better when the spin is in. That is the case with President Obama's housing stimulus tax credit. This very short article will cut through the hype and reveal the facts.

Just like the old $7,500 tax credit wasn't as most people believed, after careful scrutiny, you'll see that the new one isn't all its cracked up to be either. However, the new $8,000 deal is better than the old program, but you should still understand the rules. Here they are as currently constituted:

1. The program is only for those who have not owned a home for the last three years.
2. The program is only available for homes purchased in 2009.
3. The credit is reduced when buyer(s) income is over $75,000 for singles or $150,000 for couples.
4. The credit is paid as a refund on 2008 or 2009 taxes.

Nobody is going to come to your neighborhood handing out $8,000 checks to people who want to buy a new, bigger or different house. So don't stay up late looking for them. All in all, it is still a much better deal for those that qualify. Unfortunately not as many will qualify as most of the pundits think. However, by people continuing to hype it, it will serve to build consumer confidence which is the most important thing that can happen right now.

People need to keep buying, investing (intelligently), spending and consuming. That is what our economy does best. Be aware of every opportunity you can find to make buying your house a better deal. If you play your cards right, now can be a great time to get into a home.


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