Someone sent me this summary of the new tax credit for first time home buyers:
There were talks of a $15,000 tax credit that would be available to anyone, but that part got squashed last week. The major differences in this credit are the tax credit was increased to $8,000 and does not require repayment unless the home is sold within 3 years. The previous tax credit was basically an interest free loan that required repayment over a 15 year period.
Will this new tax credit help stimulate the housing market even more than the first round? I suspect this might get some people off the fence, but overall I think it will just be people who were already in the market for a home who will benefit from this. We will see. Obama is also supposed to announce some new plan to help homeowners facing foreclosure. Haven’t heard too many details on this one yet, but this should be interesting.