Senators are now considering increasing the $8,000 home buyer tax credit up to $15,000.
Also, they are considering eliminating previous restrictions so that singles earning over $75K and couples earning over $150K would be eligible under the new plan. And unlike the current $8,000 home buyer tax credit plan, those who have bought a home during the last 3 years would also be eligible.
The new $15,000 home buyer tax credit plan would apply to primary residences and could also include multifamily properties that are bought as primary residences. This would be an awesome incentive and would make home ownership and fixer-uppers more affordable, especially when used in conjunction with the FHA 203K rehab loan program.
The 203K allows home buyers to use a government loan to both buy a home and pay for the rehab, meaning you could only be required to use 3.5% of your own cold, hard cash on a home that requires tens of thousands in rehab.
The $15,000 home buyer tax credit was first floated by Republican law makers a few months ago but was killed by the Democrats. I think the increased home buyer tax credit has a much better chance to pass now since other so called stimulus spending hasn't made much of an impact. Perhaps, they've decided that spending tax payer money to save minnows in California isn't doing much to help the average hard working American trying to support his family.