Housing Bubble

MBA hails introduction of Homeownership Tax Credit Act

June 03, 2003

WASHINGTON, D.C. (June 3, 2003) – The Mortgage Bankers Association of America (MBA) applauded Senators Debbie Stabenow (D-MI) and Gordon Smith (R-OR) for introducing the Homeownership Tax Credit Act. The bill was introduced today in the Senate.

The new Senate bill authorizes a one-time tax credit to first-time, qualified homebuyers who are within the 27 percent tax bracket or lower in the year before they purchase the home. Married buyers could qualify for up to $6,000 in tax credits and single buyers could receive up to $3,000. First-time homebuyers can claim the tax credit in the year after their home purchase or use the credit toward the downpayment or closing costs by transferring the tax credit to their mortgage lender.

“The Homeownership Tax Credit Act puts money into the pockets of many hardworking, first-time homebuyers,” said MBA Chairman, John Courson. “One of the biggest barriers for first-time homebuyers is the downpayment or closing costs associated with obtaining a mortgage. This tax credit will give people the option to take the credit on their personal income taxes or lower their downpayment or closing costs with a mortgage lender.”

MBA is committed to increasing homeownership among low- to moderate-income families and individuals. Not only does MBA support the passage of this bipartisan bill, but the real estate finance industry is proud to be a partner in the administration’s Blueprint for the American Dream program to increase minority homeownership to 5.5 million households by the end of the decade.

Source: Mortgage Bankers Association of America