The Case For a First-Time Home Buyer Tax Credit

October 9, 2019
Image by Gerd Altmann from Pixabay 

Mortgage interest rates are declining and in some zip codes home price growth is slowing, but the number of first-time buyers purchasing homes is still declining. So why not make buying a house more affordable for first timers with a federal tax break?

Mortgage company CEO Sanjiv Das argues in a MarketWatch opinion column that a nationwide incentive coupled with the mortgage interest rate deduction could serve as “tailwinds” for first-time buyers who currently are unable to buy a home even though they have the capability and intention to repay a loan.

It’s time to re-adopt the tax break for first-time homebuyers at the federal level. A similar measure was introduced in 2008 and provided a credit up to $7,500 for first-time homebuyers. This initiative could be structured as a zero-interest loan that is paid back over several years or as a full credit. This eligibility for this credit could be targeted exclusively to first-time buyers over the next two years, which could be enough time for many young Americans to take advantage of this opportunity.

Read More


Related Categories