Housing Bill that passed today…..
by Tom on July 30, 2008
in Market Musings
“The tax credit is the best stimulative measure,” NAHB President Sandy Dunn said in a press release. “It will increase housing demand, get home buyers back into the marketplace and fight falling home prices, which threaten the economy as a whole.”
FHA changes make housing bill a ‘mixed bag’ | Inman News.
I ask you, would a $7500 interest free loan that needs to be paid back over the next 15 years be enough of a difference to get you to get off the fence and buy a new house? Would it?
I don’t know if it would for me, that’s why I’m asking…..
Tom
Also, this was in that article….
Housing Secretary Steve Preston, who’s unhappy that Congress has placed a one-year moratorium on the use of “risk based” premium pricing for FHA loan guarantees.
Okay, while I can see that it would make FHA loans cheaper for those with less than good credit, I ask you, if Fannie and Freddie aren’t making any money, and I don’t believe FHA is doing all that well either, why are we taking away their ability to adequately assess risk reward ratios on poorer credit files?
That seems to me like it will hurt the health of FHA which will be bad in the long run for the housing market?
Got to love our government, don’t you?
Having the IRS as a 15 year creditor certainly has no appeal to me. The give a $7500 credit that will take the taxpayer $3000 in CPA fees to administer. I understand that this is part of balancing the budget by giving a lot of ballyhoo in return for votes in an election year. When the IRS recaptures the credit or prosecutes taxpayers for improper reporting of their tax credit, this Congress will be long gone.