Congress is inching closer to a Housing Rescue Package for the beleaguered USA housing market. Two of the rescue plans efforts may very well alleviate some of the pains housing is experiencing, at least in the short tern.
1) First-Time Home Buyers who purchase a home between April 9, 2008 and July 1, 2009 will receive a one time $7,500 tax break.
2) Fannie Mae & Freddie Mac will have the ability to make larger loan amounts for borrowers, and obtain access to more credit (money) from the US government to help keep liquidity flowing for more mortgages.
I believe that the First-Time Buyer plan is an excellent one. It will almost immediately boost the housing market by providing more of an incentive for buyers to purchase homes. Probably close to four million buyers.
But, I have reservations about the Fannie/Freddie part of the rescue plan. Yes, it will provide short term relief to the tightened housing finance market, but at what long term cost? Our children and our children's children will more than likely be paying for this rescue plan in the years ahead.
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I'd check this to be sure, but I believe I read there's an income restriction for the tax credit. I think anyone with more than $75K AGI is not eligible. :-(
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