Tag: Home-Buyer Tax Credit
Robert Freedman of Realtor Magazine recently sat down with Linda Goold, The National Association of Realtors’ director of tax policy, and Samuel Whitfield, an NAR legislative representative to discuss the possibility of an extension. The tax credit has been, in Freedman’s words, “the economic recovery’s workhorse.” To date, over 1.4 million households have used the credit. Goold and Whitfield both point out that there is bi-partisan support for extending the credit, but the current Dec 1 deadline is quickly approaching. To watch Freedman, Goold, and Whitfield further discuss of this issue, click HERE.
According to this Wall Street Journal article, Industry Pushes to Extend Home-Buyer Tax Credit, the National Association of Home Builders, other industry groups, and the Business Roundtable, an association of chief executives, are calling on Congress to increase the credit to $15,000 and extend it to all home buyers.
“In February,” according to the article, “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 Business Roundtable is also :
- Pushing for Congress to make permanent recently expanded limits for loans eligible for government backing or purchase.
- Urging policy makers to keep mortgages at or below 5% for one year.
The article provides this estimate: “A buyer typically needs income of $92,000, assuming a 10% down payment, to qualify for a $400,000 30-year fixed-rate mortgage. With rates at 4.5%, the borrower only needs income of around $84,000.”