Housing and Economic Recovery
includes several provisions aimed at ending the current cyclical
downturn in the housing industry and strengthening the housing finance
system.
This Housing Stimulus Package with not only help the first time home buyer, but will help people in foreclosure as well.
The Housing Stimulus Package gives the first time home buyer a tax credit of $7,500 that basically is a interest free loan.
This Housing Stimulus Package
will certainly offer help in the mortgage re-negotiation and
foreclosure area. It will also stimulate housing demand among first
time home buyers with a 15 year interest free loan of up to $7,500. The
loan, which is really a tax credit, will have to repaid over 15 years.
If
you sell the home before the 15 years are up, you will have to repay
the balance, if there is any gain over the original purchase price.
The payment on the tax credit is not due until 2010 or when your tax
return is filed. The payment of the tax credit, if you claimed $7,500,
would be $500 per year until it is paid.