[vc_row][vc_column][vc_column_text]Depending on the day, it probably seems like there are a million new laws being passed, bills  being introduced, and initiatives being started — and, often, they don’t seem to have anything to do with you.

Sound about right?

It’s the way of the government, and, as high school history class taught most of it, just because an idea is brought to the table doesn’t mean anything will come of it. However, the new proposed homebuyer tax credit — if passed — could have a big impact on many first time homebuyers across the country. Here’s what you need to know.

What is the homebuyer tax credit?

President Joe Biden proposed a first-time homebuyer tax credit of $15,000, and it was brought to Congress by Rep. Earl Bluemenauer (D-OR) and Rep. Jimmy Panetta (D-CA). The proposed tax credit would offer $15,000, or up to 10% of a home’s purchase price, to first time homebuyers. 

The idea came to fruition as part of Biden’s campaign and platform promises, and would benefit low-income, first-time homebuyers. In a particularly expensive home buying market, the idea behind the credit is to encourage more people to consider buying a home.

Who would be eligible for the credit?

The proposed tax credit would be eligible to:

In order to use the tax credit, those eligible:

What else is there to know?

The tax credit, if passed, would build on a similar tax credit passed under the Obama administration — and its goal, while to increase homeownership, is also to help diminish inequity in the home buying process. A down payment assistance program, while separate from this tax credit, is also moving through Congress — and, if passed, could provide up to $25,000 in assistance for down payments in similar circumstances.

At VRM Mortgage Services, we’re here to help keep you updated and engaged with the latest mortgage services news and updates. Follow along here.[/vc_column_text][/vc_column][/vc_row]