I got a phone call yesterday from a client that started like this: “So what’s up with the $15,000?”. Nice. Let’s see if I can help…

First, it’s important to note that this is a PROPOSED tax credit. Many of us are following the new stimulus package carefully as we strain to learn the details about what this REALLY means for homebuyers.   Here’s what I’ve gotten so far (with some help from my friend Tyler Osby with Four Legacies Mortgage.)

Big takeaways from the bill:

1 ) It’s effective WHEN the bill passes. Not before.
2 ) If you bought a home last year on the $7,500 tax credit, you won’t qualify for this. Sorry, I know it sucks.
3 ) All home buyers qualify on the new bill.
4 ) There are NO income limitations.
5 ) The credit is 10% of the purchase price up to $15,000.
6 ) The credit will last for one year after the bill is signed into law.
7 ) You must occupy the home being purchased (no investors).
8 ) You must occupy the home for two years, or the tax credit is recaptured (ouch).

Again, it’s all speculation until a bill is passed. So, until things are final, things can change (and likely will). As a reminder, here’s the process of a bill becoming a law.

If you’re a home buyer that doesn’t own a home yet — the decision just got a lot easier.

Want to see the actual bill for yourself?  Here you go: http://isakson.senate.gov/Amdt_106.pdf

Photo credit: Steve Wampler

Have more questions? There are definitely more answers. Feel free to connect with me via Facebook, Twitter, Text, Email, or by cell. I’m happy to help.

asalmon@firstrealtyhomes.com