Tweaking the Home Buyer Tax Credit

I think the first-time home buyer tax credit should be extended, but it has a major flaw that needs to be corrected ["House Votes to Extend First-Time Home Buyer Tax Credit for Service Members," usnews.com]. First-time home buyers building homes should be able to use the closing date of the construction loan as their date of purchase. It is unfair that someone could start building a home in May 2009 and not get the credit, but someone can buy a standing home on Nov. 29, 2009, and get the credit. This is particularly surprising when you consider that building a home has much more of a trickle-down effect on the overall economy than buying an already standing home does.

Comment by Jason of NC

Loosen the requirements for first-time home buyers ... example, what happens when newly married couples want to buy a home together when only one of them previously owned a home? Currently, they would not qualify for the credit. This needs to change. Also, get something in place to allow buyers to use the credit immediately toward their down payment. Let's get this market moving.

Comment by Tom Atoes of IL

I believe this program began and ended too quickly. Not everyone was ready to enter this program just because it started. The person who is potentially ready to become a homeowner has to find out if he is pre-qualified/pre-approved before he starts the "looking" process. Once this begins then he starts the process of finding the home, assuming all the program criteria are met. Let's give everyone an equal opportunity to take advantage of this tax credit—one more year would be a fairer time frame.

Comment by Maria of NY

I think it's a great idea to open up the credit to people who are not first-time home buyers, but I think opening it to current homeowners would be a big mistake. Why? Well, if homeowners are getting an incentive to move from their current home, they can take another home off the market, but things will still be oversaturated because their house is now on the market. The idea is to get rid of home inventory and offering this incentive to current homeowners is not going to make much difference. However, if you don't currently have a home in your name and are moving from renting, living with family, etc., I think it's a great idea for you to get the credit. Just my two cents.

Comment by Elise of IL

I hope they extend the tax credit. My wife and I just got married in August, and we were mentally and economically drained from the wedding, so we are now just starting to look at houses. Even if we have six months, we can get enough money together for a down payment and funds to pay for all of the costs associated with buying a house.

Comment by Blake of MI

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