Obama plan for new homeowners

[ScrimpAndSave]

Do you think the amount (10% tax credit) would be taxed as income at the end of the year?

[tripods68]

There are still 2-3 million existing homes unsold and more upcoming foreclosures in the next several years that Congress and the new President have yet to tackle. The cow has the left the barn.

If he wants to stimulate the economy, how bout reducing corporate tax and individual taxes. Provide tax credits to all businesses to encourages hiring and business expansion. How about eliminating capital gains temporarily. How bout reducing payroll taxes. How about buying up all 30-year treasuries to help push down interest rate to stimulate homeowners that way. Oh what about allowing existing homeowners to REFI to reduce principle balance. THis will help eliminate homeowners that would potentially default, in millions i might add. These are far better options than providing homeowners 20K tax credit when they many will eventually default due to job losses.

[ScrimpAndSave]

Also, this cannot be used for new construction?

Weird...hmm...I'm so curious to see how this unfolds!

[jIM_Ohio]

There are still 2-3 million existing homes unsold and more upcoming foreclosures in the next several years that Congress and the new President have yet to tackle. The cow has the left the barn.

If he wants to stimulate the economy, how bout reducing corporate tax and individual taxes. Provide tax credits to all businesses to encourages hiring and business expansion. How about eliminating capital gains temporarily. How bout reducing payroll taxes. How about buying up all 30-year treasuries to help push down interest rate to stimulate homeowners that way. Oh what about allowing existing homeowners to REFI to reduce principle balance. THis will help eliminate homeowners that would potentially default, in millions i might add. These are far better options than providing homeowners 20K tax credit when they many will eventually default due to job losses.

yeah what he said

[sweeps]

Didn't we reduce taxes already, by a lot? Not sure how helpful that was for the general economy.

[jIM_Ohio]

IMO the bad economy is more because of forced regulation by the government than by its tax policies. Meaning don't force banks to give bad loans, let the market suggest what loans should be given or the banks decide what risks they take.

[sweeps]

Forced regulation. I've heard that one before from the Right.

Overall, regulations have been greatly relaxed for banks since our last Depression. Bankers were given a lot of rope and ultimately they hanged themselves.

[jIM_Ohio]

Forced regulation. I've heard that one before from the Right.

Overall, regulations have been greatly relaxed for banks since our last Depression. Bankers were given a lot of rope and ultimately they hanged themselves.

The banks were coerced into giving loans to minorities based on regulations being removed in the Clinton years -or regulations being added- depends on your interpretation- if the law says less paperwork is needed (lifting a regulation) if you extend more loans to minorities (adding a regulation) then does one negate the other?

Most of the people that law was designed to help could not otherwise have obtained a mortgage using standard methods... my understanding is the banks were required to loan these people money.

[maat55]

Safe lending for the buyer and the bank is not rocket science. Establishing a certain standard for qualification that the buyer can afford, no matter the fluxuation of value in a property, is simple. Sticking to it seems to be the challenge.

If you cannot afford or are not reliable to pay a loan, you should not have a loan. If you cannot save a certain % for a down payment, you don't deserve to own. IMO.

[humandraydel]

I signed into law the American Dream Downpayment initiative, which authorizes $200 million a year to assist an estimated 40,000 low-income families with downpayment funds. In this year's budget, I proposed the Zero Downpayment initiative, which would eliminate the statutory requirement of a minimum 3% downpayment for Federal Housing Administration-insured single-family mortgages for first-time homebuyers.

-George Bush 9/20/04


BUSH ADMINISTRATION ANNOUNCES NEW HUD "ZERO DOWN PAYMENT" MORTGAGE


BUSH SIGNS AMERICAN DREAM DOWNPAYMENT ACT

[maat55]

I signed into law the American Dream Downpayment initiative, which authorizes $200 million a year to assist an estimated 40,000 low-income families with downpayment funds. In this year's budget, I proposed the Zero Downpayment initiative, which would eliminate the statutory requirement of a minimum 3% downpayment for Federal Housing Administration-insured single-family mortgages for first-time homebuyers.

-George Bush 9/20/04


BUSH ADMINISTRATION ANNOUNCES NEW HUD "ZERO DOWN PAYMENT" MORTGAGE


BUSH SIGNS AMERICAN DREAM DOWNPAYMENT ACT

Just one of the many mistakes made by both sides.

[tripods68]

No kidding..

[cptacek]

I signed into law the American Dream Downpayment initiative, which authorizes $200 million a year to assist an estimated 40,000 low-income families with downpayment funds. In this year's budget, I proposed the Zero Downpayment initiative, which would eliminate the statutory requirement of a minimum 3% downpayment for Federal Housing Administration-insured single-family mortgages for first-time homebuyers.

-George Bush 9/20/04


BUSH ADMINISTRATION ANNOUNCES NEW HUD "ZERO DOWN PAYMENT" MORTGAGE


BUSH SIGNS AMERICAN DREAM DOWNPAYMENT ACT

See, blaming Bush won't help win your argument. Fiscal conservatives (FCs) have been pulling their hair out because of the Congress's and Bush's bad fiscal policies for years now. It is just that other, louder, more-liberal citizens have dominated the blame Bush crowd and they don't see the cringes on the faces of the FCs with regards to these issues. Just because Bush supported or didn't support a certain issue, I don't care. I have thought about my position and it squares with how I view the world. I will support the politician that also views the world my way, regardless of the R or the D behind their name.

tripods68: I agree

kork13: lol!

[humandraydel]

See, blaming Bush won't help win your argument. Fiscal conservatives (FCs) have been pulling their hair out because of the Congress's and Bush's bad fiscal policies for years now.

I'm not blaming Bush - I'm blaming politicians and complete disregard of regulation! Regulation is not this horrible enemy of capitalism. Right now, banks and investors WANT (and need) more regulation. And if there were more regulations, we wouldn't be in the situation we are in now.

Did you know that in 2004 the SEC granted an exemption to the net capital requirements for 5 companies? This exemption allowed those 5 companies to increase their leverage from 12-to-1 to over 30-to-1! Guess which 5 companies? Bear Stearns, Lehman Brothers, Merrill Lynch, Morgan Stanley, and Goldman sachs - NONE of which exist in the same form today as they did in 2004.

[maat55]

I'm not blaming Bush - I'm blaming politicians and complete disregard of regulation! Regulation is not this horrible enemy of capitalism. Right now, banks and investors WANT (and need) more regulation. And if there were more regulations, we wouldn't be in the situation we are in now.

Did you know that in 2004 the SEC granted an exemption to the net capital requirements for 5 companies? This exemption allowed those 5 companies to increase their leverage from 12-to-1 to over 30-to-1! Guess which 5 companies? Bear Stearns, Lehman Brothers, Merrill Lynch, Morgan Stanley, and Goldman sachs - NONE of which exist in the same form today as they did in 2004.

I agree that we need regulation. I think that many of the loan products out there are irresponsible. I would not loan 5 bucks to a drug addict, why did they loan money to people who could not afford it.

I want to know why the banks thought they could do this. Improper influence from the fed is my guess.