Biden proposes $10,000 tax breaks for first-time homebuyers, 'starter home' sellers [View all]
Source: CNBC
Published Fri, Mar 8 2024 3:23 PM EST Updated 19 Min Ago
President Joe Biden has floated plans to address the country’s affordable housing issues, including new tax breaks for first-time homebuyers and “starter home” sellers. However, experts have mixed opinions on the proposals.
“I know the cost of housing is so important to you,” Biden said during his State of the Union speech Thursday night. “If inflation keeps coming down, mortgage rates will come down as well. But I’m not waiting,” he said.
How the homebuyer, ‘starter home’ sale credit works
Biden has proposed a “mortgage relief credit” of $5,000 per year for two years for middle-class, first-time homebuyers, which would be equivalent to lowering the mortgage interest rate for a median-price home by 1.5 percentage points for two years, according to an outline released by the White House on Thursday.
The administration is also calling for a one-year credit of up to $10,000 for middle-class families who sell their “starter homes” to another owner-occupant. They define starter homes as properties below the median price for the seller’s county.
Read more: https://www.cnbc.com/2024/03/08/president-biden-floats-10000-first-time-homebuyers-tax-credit.html
Link to White House FACT SHEET - FACT SHEET: President Biden Announces Plan to Lower Housing Costs for Working Families
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