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Will the $8,000 First-Time Home Buyer Tax Credit Expand to $15,000?

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I was afraid this might happen. I am looking to buy a home of my own and the current market, as well as the stimulus package in place, are urging me to purchase before the end of the year. In the back of my mind I wondered if, considering the current economy, the tax credit might be extended or even (as this article's information relays) might increase. The only thing I didn't see addressed was what will happen to those of us who take advantage of the tax credit being offered on purchases this year. Will we be eligible for the difference between this year's credit and the increase or are we SOL? Should I wait and hope that Congress does the right thing by us - the middle class taxpayer? Yes, the bailouts of major companies really burns me especially in light of the lovely bonuses they gave themselves with our bailout with our (and my grandchildren's) tax dollars, although I understand why - they are also the provider of jobs to my same working middle class peers. I'm glad to see this new package targets PRIMARY homebuyers, keeping the investors (aka landlords) out of the picture. The cost to rent is already unreasonable, but we have to live somewhere.
So, bottom line, I sit on the fence undecided whether to purchase this year or wait and hope for a better package which may never come. If the proposed package would include those who purchase this year as receiving the difference in the increase, I would not sit on the fence - I'd buy now!

Linda J. Anderson of CA 2:41PM June 14, 2009

I strongly believe a %20 down payment on the median U.S. home price of 200k, for example, is more money than the majority of middle class family's can afford to pay right now, especially as there savings begin to diminish from an ailing job market. Putting anything less than %20 as a down payment introduces primary mortgage insurance the lender requires the home buyer pay. This adds even more to the variables in the monthly payments which in the end make purchasing a home unaffordable. Then the cycle continues with many people waiting and things continue to get worse for home sellers and banks.
This proposed tax credit expansion would help offset many of the costs after purchasing a new home that amount for first time home buyers with less than the appropriate savings. The boost in spending the economy would receive from new homeowners purchasing things and making repairs/remodeling for their homes would be an obvious benifit.
I do think this tax credit expansion to 15k should remain available only to first time homebuyers. But, increase the income bracket to 115,000 instead of 75,000 minimum, because the target area for individuals with decent credit scores 740 plus and the proper savings would be more suitably matched for the current home buying market.

First Time Home Buyer of MO 1:19AM June 14, 2009

This bill is absolutely necessary. Everyone's home values have suffered, and it is time to put a stop to the slide in the housing market. The idea that this bill is a give away to realtors is ridulous. It is the taxpayers (home buyers) who will be getting this money, not realtors or home builders.
Democrats in Congress will pay a heavy price next year if they don't do the right thing and push this legislation through. It is in the best interest of the American people and the economy.

Steve of NC 7:00PM June 13, 2009

We just closed on a house - so should we wait or file right away to get the 8k? Maybe we should wait till they figure out coz I do not want to get shafted - as it is I am catching a falling knife, and do not want to lose the extra 7k.

Marc of CA 2:28PM June 13, 2009

This is just another subsidy to housing and part of the bad policy which enourages home ownership and speculation in the first place. The market must lear out through lower pricing so that people who can actually put the 20% down for a mortgage can actually afford a home. The average non-speculating American is getting the short-end of the stick here

satriani of NY 1:50PM June 13, 2009

WHAT HAPPENS TO THE PEOPLE WHO IS GETTING HOUSES NOW, AS WE SPEAK WHILE THE 8K IS IN PROCESS, WILL THEY BE ABLE TO AMEND AGAIN FOR THE REMAINING TAX CREDIT, OR IF THERE 8K TAX CREDIT IS IN THE MAKING NOT PROCESSED YET, WILL THE IRS MAKE CORRECTION AND PROCESS 15K OPPOSE TO 8K. HOW DOES IT AFFECT THE PEOPLE THAT IS GETTING READY TO GET THE 8K, WHILE THIS CHANGE IS TAKING AFFECT, PEOPLE DONT KNOW WETHER TO WAIT, OR GO.

concerned of IL 10:52AM June 13, 2009

All these efforts of stimulating real estate activities are being wasted by a new regulation called HVCC (Home Valuation Code of Conduct) that is creating nothing but a nightmare. I am not even in the real estate industry, but as a consumer and a home seller, I'm having the first hand experience of this nightmare. I had 4 offers on my house ranging from $540K to $545K, but none of the contracts are coming through due to inexperienced and incompetent appraisers who are not familiar with our area coming up with an appraisal as low as $120K below the contract price. All buyers had great income, top credit scores, and enough downpayment. Home sales are not closing since this new regulation went into effect May 1, 2009.
This is driving all honest, knowledgeable, and experienced appraisers out of market, and the only ones being hired by the mandated by the national home appraiser companies are inexperienced, unlicensed and unskilled novices.
It's incredible that even a person like myself who is not involved in the real estate industry at all is being punished so severely for the regulation that was intended to curb real estate fraud. The financial hardship that's being caused by my inability to sell the house, despite several enthusiastic buyers lined up and willing to pay the full price, is simply ridiculous. Please stop this madness.

Jean Y. of CA 10:47AM June 13, 2009

Why should this not be seen as a giveaway to Realtors?
Why should this not be seen as a giveaway to the well-to-do (who are the most likely to use it, if not income-limited)?
Why should taxpayers dilute their currency further with deficit spending to pump up the prices of houses that are still over-valued and over-supplied in the "larger house", "move up" markets?
Why would we want to foreclose on millions of people and give millions of OTHER people $15,000 each to buy the same houses that are already "distress-priced"?
Why would a bunch of Democrats be expected to support a Republican idea that gives half or more of $32,000,000,000 to the wrong people?

Muser of NM 10:42AM June 13, 2009