$7500 Tax Credit as a Down Payment NOW!

Law makers in Washington have one of the most significant bills in real estate history sitting in front of them right now which could be instrumental in jump starting our market in the upcoming monthes. We are all aware of the tax credit for first time home buyers that can give $7500 to a home buyer after they file their taxes. How amazing would it be for all fthbs to qualify to have this money upfront during the loan process to secure an FHA loan without using CHFA, at 7.5%. This would provide a 3% down payment to buyers up to $250,000, essentially allowing for 100% financing for those buyers who qualify. The biggest hurdle that most buyers in this category face is the down payment of 3% and don't want to pay 1.5% more interest per year to avoid this problem. The $7500 as written into this bill would allow fthbs to apply for this credit ahead of time and use it at the closing table as a down payment. I believe that this incentive is crucial to improving the market throughout the country since the government has set aside this credit already, why not put it to use to encourage buyers now when the economy needs the real estate boost.

The legislators in this country must see the importance of this bill and urge Congress to act on this asap. As interested professionals in the real estae business we should do all we can to lobby for this legislation to become a law for the future of our own business and home prices. If only 100 Colorado Springs residents used this program each month it would account for 20% more home sales in our community and would help the overall strength of the community real estate market. I look forward to your thoughts on this proposal. Ian Stone