Kona Kohala Blog

Here's something out of the blue, no one I've been in contact with had heard anything about it.  The congress has passed a housing stimulation bill that includes language giving first time home buyers up to $15,000 in tax credits.  This still has to go to the senate and some kind of compromise will be worked out that could modify that number of eliminate it all together.

If it passes, it means that home buyers, not just first timers, would get up to 10% of the purchase price credited to them in the form of a tax deduction; whether a credit or deduction is yet to be determined.  In either case, as written, it wouldn't have to be paid back like the current $7,500 credit and would apply to all home buyers.

This could be a great kick in the pants for home buyers.  It's too bad that the money will be like the rest of the magic bean money that's being created by slight of hand by our ever so financially enlightened representatives but in the short term will go a long way towards encouraging buyers to get off the fence.

Now all we need is some cooperation by the Scrooge like banks.  If they will loosen their criteria, we may actually see some action and a reprieve for the housing industry.  Do keep in mind, however, that Fannie Mae is still giving loans with just 3.5% down so the money's there, you just have to find it.

If you received this weeks Aloha Friday today, there are some tips for getting a loan today.  If you're not on the mailing list, email me at ferrari.realestate@gmail.com and I'll add you to the list. 

Hope all is well in your world.  aloha