Housing Stimulus Package to Provide up to $7,500 Tax Credit, Stabilize Neighborhoods, Attract New Capital to Communities:

This legislation, Housing Stimulus Package, will provide an enormous help to the housing problem and housing industry. It gives a temporary tax credit to first time home buyers and will help the mortgage market and troubled loans. The federal government is providing this $7,500 tax credit for first time home buyers.

You will have to buy your home by June 30, 2009. If you are single, the benefit phases out if you earn more that $75,000. For couples, the earning level is $150,000.

The Federal Government  has approved a major Housing Stimulus Package that will address the turmoil in the financial and housing markets and to bolster the nation’s faltering economy.

One of the key items in the Housing Stimulus Package is a $7,500 tax credit for first time home buyers. This will amount to an interest FREE loan. You will have to pay it back, but it is interest free.

Congress has worked to provide relief to the American people with this Housing Stimulus Package which contains several provisions to help home buyers and stop the slide in home prices. It provides a real lifeline to borrowers facing foreclosure and improves on mortgage liquidity and bolster confidence in Freddie Mac and Fannie Mae.

Senate Banking Committee Chairman Chris Dodd, calls it “The most important piece of housing legislation in a generation.” Senator Dick Durbin, “I’m pleased that the Senate is addressing the housing. While it is not a perfect bill, it is a recognition that this is a crisis which is not capable of healing itself.” Senator John Mc Cain, said "he supports the housing bill passed by Congress yesterday to stem foreclosures and aid Fannie Mae and Freddie Mac." Senator Barack Obama, "I applaud the Senate's passage of urgently needed housing legislation which the President has finally agreed to sign." House Speaker Nancy Pelosi, said that the bill “Represents the most far-reaching reform of our nation’s housing finance system in a generation.”

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.