President Elect Joe Biden has unveiled an ambitious plan designed to help first time home buyers get into their first home. Before we breakdown Biden’s first time homebuyer tax credit, check out his website for his vision for the real estate industry. It can be found on his website.
The proposal is part of a $640 million dollar housing plan that Biden plans to usher in once he becomes president.
The centerpiece of the plan is a tax credit of up to $15,000 for first-time homebuyers. Biden originally proposed the credit in February, but then COVID-19 happened and Biden refrained from talking about it on the campaign trail.
COVID-19 has had a devastating impact on the economy but the housing market is still strong and this plan will help the people that need the help the most. First time homebuyers.
The homebuyers would get the payment up front, not at tax time. That allows prospective homebuyers to have the money on hand to put down as part of their down payment.
The tax credit would have to be passed in Congress so it may not be coming until the spring at the earliest. Given the gridlock in Washington, it may take a while so be patient.
Either way, it is much needed assistance for first time homebuyers. With housing prices continuing to go up, many first time homebuyers feel that their first home is only a pipe dream. Biden’s tax credit gives them hope.