$15,000 Homebuyer Credit Goes Away

Inman News reports that the proposed $15,000 home buyer tax credit was cut from the economic stimulus package and is headed for a final vote on Friday. The homebuyer tax credit was included in the $838 billion economic stimulus package passed by the Senate on Tuesday but was then scaled back to $8,000 and limited to first-time homebuyers as part of a compromise between the parties. It appears that the $8,000 tax credit reached in the compromise would replace a previously approved $7,500 tax credit which is structured as a loan. Under the new proposal the $8,000 tax credit will only be available to first-time homebuyers, but the good news is that it would not require repayment. In another bit of good news, it looks like this bill will restore higher loan limits for Fannie Mae and Freddie Mac. Inman reports that National Association of Realtors welcomes the idea of the expanded tax credit and estimates that this credit will drive more than 200,000 additional homes sales.