When President Bush signed the Housing and Economic Recovery Act of 2008 into law on July 30, a world of opportunities became available to first-time home buyers, home owners struggling to pay their mortgages and renters alike.
In addition to giving local governments the assistance they need to support and expand local programs and initiatives through a one-time allocation of nearly $4 billion in additional Community Development Block Grant (CDBG) neighborhood stabilization funds to help ease the burden of vacant housing caused by foreclosure, the legislation brings additional relief to homeowners in response to the mortgage foreclosure crisis and is intended to strengthen the economy by restoring confidence in the housing and credit markets.
“This landmark bill contains several provisions to help home buyers, stop the slide in home prices, provide a lifeline to borrowers facing foreclosure, improve mortgage liquidity and expand the supply of affordable rental housing,” said National Association of Home Builders (NAHB) President Sandy Dunn.
NLC President Cynthia McCollum, council member, Madison, Ala., recently praised the act, saying, “The legislation will help thousands of Americans stay in their homes, provide cities with the funding they need to stop the downward spiral of home vacancies and neighborhood deterioration, and stabilize the home financing system.”
A centerpiece of the act is a temporary, $7,500 first-time home buyer tax credit for the purchase of any home. The tax credit can be used for homes purchased between April 9, 2008 and July 1, 2009. It is expected to provide a significant financial incentive for qualified home buyers who may not have been able to afford to buy during the past few years.
According to Dunn, the tax credit “will increase housing demand, get home buyers back into the marketplace and fight falling home prices, which threaten the economy as a whole.”
NAHB has set up a website, http://www.federalhousingtaxcredit.com/, to help educate consumers about how the tax credit works and how they can put it to their advantage. The site has attracted enormous interest — since July 30, more than 100,000 people have visited.
Combined with near-record low interest rates, a large selection of homes on the market to choose from, and competitive prices, the tax credit is one more reason that now is an ideal time to buy a home.
Details: For more information on the First-Time Home Buyer Tax Credit and resources available from NAHB, visit http://www.federalhousingtaxcredit.com/.
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