This President Biden’s housing measure will help families buy their first homes. Creating a new refundable, advanceable tax credit of up to $15,000 will help families to build wealth.
Accordingly to the housing plan outlined on the campaign, “This tax credit will be permanent and advanceable”. This means that homebuyers receive the tax credit when they make the purchase instead of waiting to receive the assistance when they file taxes the following year.
The IRS defined a first-time homebuyer as one who had not owned a home in the prior three years. This makes up for 32% of the overall homebuyers in November 2020, according to the National Association of Realtors.
The $15,000 first-time homebuyer tax credit is likely to help all these homebuyers who have been struggling to make down payments due to the high home prices and strict lending standards.
Currently, home prices were rising due to the historic-low mortgage rates, and causing difficulties for first-time home buyers to bring enough cash for the downpayment and the closing costs.
If you are planning to buy a home this year, please have your 2020 taxes declared as soon as possible and talk with your lender or mortgage broker to find your home loan limits.
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Sources:
• Biden to Offer $15,000 First-Time Homebuyer Tax Credit
https://www.yahoo.com/now/biden-offer-15-000-first-204040625.html
• Biden’s New Policy to Help New Homebuyers
https://www.nasdaq.com/articles/housing-market-poised-to-get-further-boost%3A-5-winners-2021-01-21