Feb 2009 Version of the Home Buyer Tax Credit

Ok, so it turns out the previous 10%, up to $15,000, tax credit for all homebuyers was just too good to be true.  Although the Senate approved it earlier this week, after re-crunching the numbers, the House of Reps found it to be too expensive a price tag. 

It looks like Congress is going to pass a modification to the existing first-time home buyer tax credit instead.  Currently, the credit is for first-time home buyers (or buyers who haven’t owned a home in the past 3 years) for an amount of $7,500 that must be repayed as an interest-free loan over the course of 15 years.  The new modification will provide an $8,000 tax credit for first time home buyers for homes purchased between January 1 and December 1, 2009.  This credit does NOT have to be repaid.  The tax credit phases out for individuals earning more than $75,000 and couples earning more than $150,000.

 Both the Senate and House are expected to vote today on the entire stimulus package.

For more information about the stimulus package:

http://www.cnbc.com/id/29181656