Fix Housing First

I think we might have a solution to the never ending construction downturn. NAHB as part of the Fix Housing First coalition is proposing some additions to the previously issued Housing Stimulus Package issued in July 2008.

The Fix Housing First coalition would like to see the following additions to the tax credit:

• All primary home purchases between April 9, 2008 and December 31, 2009 would be eligible.
• The credit amount would be increased to 10% of the priceof the home, capped at 3.5% of FHA loan limits, brigning the credit to a range of roughly $10,000 - $22,000.00
• The currnet recapture provision would be eliminated. (no pay back of the $7,500) repayment would only be required if the home were sold within three years
• The credit would be available at the time of closing, making it easier to be used as a down payment. (great idea)

A big second part the housing stimulus package would be to provide a low mortgage rate for buyers. 30 yr fixed rate at 2.99% on homes closed until June 30, 2009 and 3.99% on homes closed between June 30 and Dec. 31 2009

I have always felt, that this second component is what will drive the recovery. We need to get the rates down where it makes sense to sell your home even if it is at a reduced rate. Long term that low interest rate will be a major advantage to the pocket book of the average american.

For a further review of the info visit www.fixhousingfirst.com