Republican amendments to the current stimulus package up for vote later today include:
-Restoring the $729,750 loan limits in some areas
-Temporarily offer homebuyers a tax credit worth $15,000 or 10% of a home’s purchase price, whichever is less, with the option to utilize all in one year or spread out over two years. The credit does not have to be paid back. It would be available to all purchases of any home from date of enactment for one full year - no longer just a first time homebuyer credit, and borrowers would be able to claim the credit against the 2008 tax return.
-Other details:
- buyers must occupy the home for two years as their principle residence
- includes a two year recapture provision (if they leave the home in two years they lost the credit)
- purchases of homes by investors are ineligible
The bill is still working its way through Congress, and the House of Representatives must still negotiate with the Senate since the House bill does not contain the credit.
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