Blog > Finally, Real Stimulus for Housing

It looks like Washington is finally going to do something significant to support the housing market. Last night the Senate passed an amendment to be included in the economic stimulus bill that would give all homebuyers over the next year a $15,000 tax credit. This is a vast improvement from the current credit, which gives first-time homebuyers a credit of $7500 that must be repaid over a 15 year period, effectively making it an interest free loan. The new amendment, sponsored by Senator Johnny Isakson (R-Ga.), has a few minor caveats – e.g. primary residences only – but by and large it’s as good as it appears. Uncle Sam is truly paying you to buy a home. The effect on the housing market could be substantial, as the new tax credit gives prospective homebuyers a reason to jump off the fence and get into a home.