Obama plan for new homeowners

**kork13** · 01-11-2009, 09:43 AM

.........are you freaking kidding me?? If this is true, I think I'll be writing a number of letters fairly soon to a few members of the congress. Sorry people, but that's a joke. No way should the government be giving people $20k straight up, even if directed toward a house. Low-cost loan? Okay, I could live with that. But free money? let's be serious here....

**fruitbowlk** · 01-11-2009, 09:46 AM

That would be great. Hopefully I would be able to get on with that. I just would need an extra 10,000.

**maat55** · 01-11-2009, 09:47 AM

I don't know why this country does not just skip socialism and just jump right to communism. It's a long boring ride for the capitalist that know we are headed there anyway.

**ScrimpAndSave** · 01-11-2009, 09:59 AM

20% or 20k?

Oh...nevermind...I read the post too fast.

Wow this is interesting...

**jIM_Ohio** · 01-11-2009, 10:01 AM

like extreme home makeover, what assurances would the taxpayers have that the new homeowner would not take a 2nd mortgage out to spend that 20k?

**maat55** · 01-11-2009, 10:06 AM

If there is any thread of capitalism left in Congress, this would go down in defeat just on principle, but it is a vision of the possible waves of socialism to come.

I would like to believe that Obama will do the right thing. I question whether he even knows what it is.

**gamecock43** · 01-11-2009, 10:09 AM

wait...I'm reading it now on the internet, I'm interpreting it as a 10% Mortgage tax cut. Actually, I'm not sure how to interpret this....

pasted from: Stimulus? Okay, but what about housing? - Jan. 9, 2009

"Offer bigger tax break to home buyers: NAHB has been pushing for all home buyers to get a temporary tax credit for buying a primary residence worth up to 10% of the purchase price. A tax credit is a dollar-for-dollar reduction of one's tax liability.

Currently, only first-time buyers may get a temporary tax credit worth up to $7,500 for a limited period of time. But that credit functions more as an interest-free loan from Uncle Sam because the home buyer has to repay it over time.

Neither Dodd nor Senate Finance member Charles Schumer, D-N.Y., speaking to the press on Thursday, endorsed the idea of an actual tax credit. Dodd said a tax credit would not help prevent foreclosures but could spur economic growth.

And Schumer said there was "broad support" among members of the Senate Finance Committee to make tax policy changes to support housing, particularly existing homes as opposed to newly constructed ones."

**ScrimpAndSave** · 01-11-2009, 10:15 AM

Wow...so it is a 10% of the purchase price...but up to $20,000? I know you mentioned $20,000 earlier but I didn't see it in the article.

**kork13** · 01-11-2009, 10:17 AM

I sometimes wish I had a button that I could push which would simultaneously smack the Congress upside the back of the head.

...correction: Scratch "sometimes"--make that "frequently"

**ScrimpAndSave** · 01-11-2009, 10:22 AM

Here is some more info:

Senator Barack Obama's Partial Homeowners Plan, Homeowners Plan

**gamecock43** · 01-11-2009, 10:27 AM

My husbands really excitable father called us telling us Obama is giving us 20 grand off the purchase of our new house and I trusted the relayed information blindly...now that I'm really trying to find what he was reading.

**gamecock43** · 01-11-2009, 10:47 AM

I went straight to the source and called the dad, he does not know where he read it, but he read that the Homebuilders association is lobbying for a 10% credit up to 20k off the purchase of an existing home between April 08 and Dec 09. This will eat up existing inventory and stabilize prices. So what the Homebuilders association WANTS and what will get PASSED is somewhere in the middle. But I STILL cant find what he read!

**ScrimpAndSave** · 01-11-2009, 10:51 AM

Interesting...I wonder if you can get both the $7500 tax credit interest free loan and alsothe $20,000.

Wow, what a great time to buy.

**jIM_Ohio** · 01-11-2009, 10:52 AM

the best laid plans...

Most of the people which are not in a house now would be the same people which had sub prime mortgages before... these would be the same people which would probably spend any equity they had, borrow against any equity the government gives them, or otherwise just delays any recovery the housing market could do with free market principles.

I do agree this would stablize prices short term
I think the people getting the houses would borrow against the new found equity and make a problem come to head a few years later.

Call me a skeptic...

Obama plan for new homeowners