$15,000 Home Buyer Tax Credit

Update: I notice I am getting a lot of hits from people wondering when the credit is valid for. The amendment indicates the credit is good from the date the bill is enacted for 1 year forward. People purchasing before this time do not get this credit.

Here is the text of the new $15,000 Home Buyer Tax Credit. It has been added to the Senate version of the Stimulus bill. If passed it would have to be reconciled with the House version which doesn't have the provision but I don't see it being taken out. As the text currently stands with it being a credit after purchase not a credit at purchase I don't think it will affect the higher priced markets much. There was a previous version where it was designed to be able to be used as a down payment. That combined with FHA loans would means that 100% financing would be back for a wide swath of the market. I think that is a horrible idea and luckily it appears to be removed from the current version. I think we will see spurred home sales in the lower priced areas of the USA which are at or near affordability. For the high priced markets in California it might sucker some to jump in early but I don't see it as a game changer.

For a higher level overview you can read the press release here.