Homebuyer Tax Credit: Nothing Just Yet

The White House, together with trade groups from the real estate industry, said that there won't be any serious discussion of reinstating the homebuyer tax credit. Apparently, speculations occurred after Shaun Donovan, the Housing secretary, released statements August 29 on an early morning news show.

Secretary Donovan discussed how unexpectedly low home sales for the month of July were. While the government was busy implementing a new program to help borrowers who are underwater, rumours stirred about how this could relate to tax credits for homebuyers was easily. The new program is an FHA program, specifically a refinancing program, which unfortunately is in no way related to homebuyer tax credits. The emergency loan program was all about assisting troubled borrowers so they are able to stay in their houses and that's it.

When being asked about reinstating the homebuyer tax credit, Donovan simply responded that it is still too early to discuss anything. However, Secretary Donovan implied that the return of the homebuyer tax credit is definitely being looked at now.

It was also asked if the tax credit could be stretched further for the third time into fall. A response to the question implied that it will not happen in the near future, but the idea is not completely shut out and might be used again.

Secretary Donovan said that no one is looking into the homebuyer tax credit at this time. This means that the homebuyer tax credit is not a priority in the Congress right now, and that there are many concerns that are considered far more important.

Two big supporters of the homebuyer tax credit's continuation, the National Association of Home Builders and the National Association of Realtors, have stopped promoting the homebuyer tax credit revival. According to them, it would be futile to exert more effort in it since it is already expired.

The original request of the NAR was to have the homebuyer tax credit extend until the end of the year. They lobbied this suggestion relentlessly before the tax credit finally expired. For homebuyers it is best to not wait for the credit which may not come. If and when it does get reinstated, then there will be a great rejoice among homeowners. Until then it is best to keep your focus on something else.