Good Morning Rosa,
I wanted to interject here ans say that Mr. Roma is / was correct. The senate was attempting to add this to the bill to benefit "ALL" homeowners, not just buyers, and actually it is first time buyers .. let me explain.
I do believe either Thursday or Friday after the compromise committee between the house and the senate failed to keep the Senate's addition to the "Let's spend every dime we can and see what happens" bill.......
Where I come from its called "throw it against the wall and see if it sticks...." but anyway... The senate had made the change to be as Geovanni says, from the House version which is to be a $7000 or $7500 tax loan paid back over 15 years via your taxes, meaning year 1 you get a $7500 tax credit on your taxes, I believe this is in addition to the typical deduction of mortgage interest, but please check with an accountant for true verification.... but in year two, you begin to pay that $7500 taxes back at a rate of $500 per year. So in reality if your deduction including interest expenses equaled $10,000, then because you are paying back the Gov't for the $7500 first time home buyers "Tax Loan", you actually show the tax deduction of $9,500 .
I am not 100 percent on every specific as the bill hasn't passed yet, and I know better than to count on it until then, either way, I am not a fan of this bill at all. While I do know we need a stimulus, I do not believe $400 per person does much for the majority, while it will tremendously assist those on fixed income and especially assist those that pay zero taxes, it leaves out the average middle class citizen. I know that the real estate industry itself and over eager investors were a large contributing catalyst to our current economic climate, so therefore it would only be accurate that if the elected officials were wise, they would rectify the real estate industry to begin to stabilize the economy.
I am not saying only the real estate industry, and I am not denying that many programs need funding and assistance, but I am saying that this bill is filled with to many items that the house has been holding up it's sleeve waiting for their first chance to add it to anything that has an opportunity of being passed, and this bill is going widely uncontested, because "NO-ONE" officially knows everything about it...... Other than our economy and our country needs an injection.
My strongest suggestion, wait a few more days and it will be all out in the paper and on the net.
I am fairly confident that the rumors of being able to use the $7,500 to purchase or for down payment assistance are not true. Only a first time buyer would get the tax loan on the NEXT tax return, not at the closing table.
I much like yourself, am waiting for the official word on this bill. I work with needy families everyday in this current real estate market, and I hope they are not left out in the cold because some members of the house felt it more important to sod some patchy grass....
I know its just my opinion, and I hope somewhere in there I answered your question..