$7,500 For Your New Home -- No Repayment Required

• January 26th 2009

by Mark Wellborn

Imagine if you were buying a home for the first-time and, as a bonus, the federal government gave you $7,500 towards the purchase of the property that never had to be repaid. The Washington Post wrote an article recently about this reward becoming a reality as the Democrats iron out details in their $825 million economic stimulus package.

As it was initially introduced, the $7,500 credit was available to people who had never bought a home or hadn’t owned one during the previous three years, and would close on the property between April 8, 2008, and July 1, 2009. The credit would need to be repaid in full over a 15-year period.

However, according to the Post, the repayment requirement for the loan may be eliminated under the Democrats’ new plan which could in turn lead to a huge rush in property sales this year:

“Although final details on a revised credit are still subject to negotiations between the House and Senate — and to passage of the economic stimulus package itself — there’s a good chance that buyers who sought the credit in 2008, and new purchasers in 2009, will be relieved of the repayment requirement.

According to industry projections, removing the repayment rule could lead to an additional 202,000 purchases this year. The National Association of Realtors is pushing for the July 1 deadline to be extended to Dec. 31, opening the door to even more sales.”

This article originally published at https://dc.urbanturf.com/articles/blog/7500_for_your_new_home_--_no_repayment_required/474.