Lee Taylor,
Agent, Atlanta, GA
"...Senator Johnny Isakson, Republican of Georgia, a former real estate broker, who was the prime sponsor of the homebuyer credit, said it was modeled after a similar, $2,000 homebuyer incentive that helped lead the country out of recession in 1975.
“We do have a history in this country with housing and it goes back to the crash of 1974, which actually in terms of inventory and price declines was comparable to what’s happening now,” Mr. Isakson said at a news conference.
“Within one year of the inception of that tax credit, two-thirds of the available inventory that was on the market was gone. The market moved back to a balanced inventory, values stabilized and things became very healthy. The only reason I know all of that is I was selling houses in 1974, that’s what I was doing to feed my family and make a living...”
“We do have a history in this country with housing and it goes back to the crash of 1974, which actually in terms of inventory and price declines was comparable to what’s happening now,” Mr. Isakson said at a news conference.
“Within one year of the inception of that tax credit, two-thirds of the available inventory that was on the market was gone. The market moved back to a balanced inventory, values stabilized and things became very healthy. The only reason I know all of that is I was selling houses in 1974, that’s what I was doing to feed my family and make a living...”
Web Reference: http://www.nytimes.com/2009/02/05/us/politics/05stimulu...
Ruth Brinkley,
Agent, 47630
This tax credit will go to responsible homebuyers who met the requirements to buy a home ie credit score (paid their bills), saved some money to show committment and retraint from wasting money. Later as a reward they will be given a tax credit to be used to pay down the mortgage for great equity or most likely spend it for some item they might normally finance - thus more money in the economy - more jobs! People have to spend money to get the economy going. Look at all the people who will get a paycheck if houses start to sell. Realtors (who doesn't know a Realtor that feels as if they've lost their job), support staff in Real Estate offices, marketing folks at newspapers, web sites, magazines, etc, bankers and all the support staff, appraisers, inspectors, contractors, Title Companys, and on and on. Add to that a $15,000 credit for each buyer to spend next year at tax time. If that doesn't put people to work, then what will?
There will still be housing programs for people who have no extra money to spend.
There will still be housing programs for people who have no extra money to spend.
Lorie Gould,
Agent, Atlanta, GA
Personally, I believe there are still a lot of buyers ready to buy... just scared to buy so I believe this credit will get many off the fence. There are people with good credit and with 3.5% down payment.
We are in our current market for many reasons but I would say a huge part is people chose to no longer settle for what they could afford and pushed themselves into interest only loans so they could afford more but could not afford the adjustments. Another part is that so many received loans with 100% financing with low credit scores. History usually repeats itself. If they did not pay bills prior which gave them the bad credit then they certainly are not going to pay bills going forward. I believe the only exception for credit score should be someone with no credit... no negative and no positive.
I am okay with 600 minimum score but the 680 minimum score that was just announced this week is a little steep!
We are in our current market for many reasons but I would say a huge part is people chose to no longer settle for what they could afford and pushed themselves into interest only loans so they could afford more but could not afford the adjustments. Another part is that so many received loans with 100% financing with low credit scores. History usually repeats itself. If they did not pay bills prior which gave them the bad credit then they certainly are not going to pay bills going forward. I believe the only exception for credit score should be someone with no credit... no negative and no positive.
I am okay with 600 minimum score but the 680 minimum score that was just announced this week is a little steep!
Web Reference: http://www.HomesByLorie.com
Ruth Brinkley,
Agent, 47630
I think it's enough to get housing rolling again. If buyers get it after the fact it will increase spending for other items (My neice bought a house with her hard earned money and got the $7500 credit - then bought her son a car - Walla!). If buyers go in with this kind of credit up front we'll have a high percentage walk away when the going gets rough. In other words, our 100% financing with a $500 contribution toward the transaction is one big reason we are where we are today! Buyers had not put anything into the purchase.
Bill Piper,
Agent, Atlanta, GA
Mixed emotions. I don't see how giving $15K to someone after they have bought a home stimulates home buying that much. FHA credit scores just went to a minimum FICA score of 600, which means it's getting tougher to get a mortgage. I agreed with FHA going to risk based PMI rates and agree that mortgage companies should set interest rates based on risk so long as they don't gouge the buyers, but now we're making the pool of potential buyers even smaller.
Why can't we find a way to use that money up front to either pay down debt, thus improving credit scores and/or for down payments? Has anybody seen an increase in activity as a direct result of the $7,500 tax credit? If you don't have 3 1/2% to put down & a FICA score of 600, you can't buy a house - doesn't matter if you offer a $50K tax credit.
Why can't we find a way to use that money up front to either pay down debt, thus improving credit scores and/or for down payments? Has anybody seen an increase in activity as a direct result of the $7,500 tax credit? If you don't have 3 1/2% to put down & a FICA score of 600, you can't buy a house - doesn't matter if you offer a $50K tax credit.
Solomon Greene,
Agent, Duluth, GA
Frankly, I think taxes can be cut until the cows come home, but it will matter little without JOBS!.
Separately, I am doing OK with real estate, largely due to the availability of the various down payment assistance here in Georgia. The state program helps buyers with their down payment when they really need it at closing, not afterwards. Further, it is a mortgage revenue bond program, so home buyers who use it may not take advantage of the $7,500 tax credit. The current tax credit has not been the panacea that our economy needed and I'm skeptical about this one. One of the congressmen said it best in my opinion. "What good is a tax credit without jobs?"
Separately, I am doing OK with real estate, largely due to the availability of the various down payment assistance here in Georgia. The state program helps buyers with their down payment when they really need it at closing, not afterwards. Further, it is a mortgage revenue bond program, so home buyers who use it may not take advantage of the $7,500 tax credit. The current tax credit has not been the panacea that our economy needed and I'm skeptical about this one. One of the congressmen said it best in my opinion. "What good is a tax credit without jobs?"
Web Reference: http://www.TheAtlantaHomePages.com
Lee Taylor,
Agent, Atlanta, GA
I think it's sexy, just like you Deryk.
Web Reference: http://intowninsider.com/
