The Vision Of Obama to Help out First Time Home Buyers - Obama's Stimulus Package
In different steps taken by the President Obama and his government to carry the economy out of dark clouds of collapse, one is the stimulus package for first time homeowners. The economic down turn of 2008 has affected everyone in some way or the other. It was seen that people who were affected the most by this recession were those who were paying very high interest rate for home loans. Due to these soaring interest rates and mortgage bills many were reluctant in buying a home or were delaying their plans to purchase.
There are different qualifications for a person to be adequate for the stimulus package-
*Only houses bought between dates 1st January '09 to 1st December '09 are involved.
* By first time home owner government means, those who have not owned or bought a house 3 years previous to this purchase.
* Also the person must lodge in the house for there after the purchase.
* To be eligible for the stimulus package the modified gross earnings of the person should be less than $ 95,000 (p.a.)
* For married couple the boundary is up to $ 170,000(p.a.)
The benefits of this stimulus program can be categorized as:
* Tax benefits
* Lower interest rates
* Down payment help
A 10 % tax credit on gross purchase price is allowed to the qualified person. There is also an alternative of taking the benefit in the year of purchase or within a period of two year after final sale.
Down payment is also about 10% of the purchase price. The person can get help from the stimulus package by decrease in the down payment necessary to secure loan.
To support people to buy homes some extra benefits are incorporated in the package like tax rebates. These rebates are given on the interest amount attached with the loan.
The President Barack Obama knows it very well the most significant to the health of any country is economic growth. Being a worldwide economy every country's economic health has a result on the others as well. There cannot be any economic growth without infrastructure development. Therefore Obama aims to support and attract people for home ownership. Clearly this plan on the part of government has made buying a home much easier and within your means. Thus stimulus package not only benefits the real estate zone but the whole economy.
