Under this new proposal ALL homebuyers would qualify, not just new or first-time homebuyers.
While most agree that the current plan has been beneficial in supporting a housing recovery, many have complained that it didn't reach as many potential homebuyers willing to buy.
In addition to expanding the ALL homebuyers, the new proposal would also eliminate the existing income qualifications.
The current income qualifications have been seen as a roadblock to unleashing the full potential of the existing tax credit.
To qualify for the full benefits under the current plan, single taxpayers mush have annual incomes under $75,000 and married couples mush have annual incomes of under $150,000.
Some have pushed for the expansion of the benefit to as high as $15,000.
It appears to have bipartisan support, including that of Banking Committee chairman Chris Dodd, D-Conn.
Remember, the existing First-Time Homebuyer Tax Credit is set to expire 12/1/09.
This means that you have to close the transaction for the home purchase on 11/30/09.
Time is running out.
This is sure to be a top priority topic on K street in DC when they come back from Labor Day vacation as many fear the expiration of the current first time homebuyer program will jeopardize a housing recovery (or at least stabilization) that appears to be underway.
As much as 40% of home purchase transactions in 2009 have been from first time homebuyers rushing to take advantage of the existing tax credit.
Stay tuned!