US Home Builders: tax benefits and mortgage subsidies on 100 Mortgages

Home builders in the US are feeling the turmoil from the worse downturn in housing in decades, and in an attempt to kick start the housing market they are pushing a new plan of mortgage subsidies and tax benefits.

The proposals are similar to the measures used to fight the 1970’s housing slump, one being a federal program to push down below market level the mortgage rates and second, a generous tax credit to help in the home purchase.

Leaders in the housing market will start by selling the plan which is dubbed ‘fix housing first’ to lawmakers, this could happen this week in the hope it will be tacked onto stimulus legislation Democrats are likely to push after the election.

The legislation which home builder say would probably include an extension of infrastructure spending and unemployment benefits that do not have any major effect unless measures to help the housing sector are included.

Talking of the $7,500 tax credit for first-time home buyers that congress passed this summer, home builders have said that it was a disappointment, mainly because the beneficiaries have to pay back the money to the US government over a certain period of time. So it really did nothing for sales at all.

Source: moneycnn

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1 Comment
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With the current state of the market, it helps to get all the tax benefit help you can. Do some research before you purchase, there are a lot of great resources out there you can use to your benefit.

Comment by Custom Home Builder — October 29, 2008 @ 11:02 pm