Real Estate Pro Articles
   
   

Tax Housing Subsidies Information



[Valid RSS feed]  Category Rss Feed - http://www.realestateproarticles.com/rss.php?rss=286
By : Sonia Smith    99 or more times read
These days, the real estate market is at a low in spite of the signs of improvements in some areas. Foreclosure continues to rise and home values continue to fall. Most of the housing industry losses are subsidized by the government. In fact, it has been subsidizing the housing market for years and years, as seen in several of their programs to help people own a home. There are also tax housing subsidies to benefit homebuyers and homeowners. This is created to encourage homebuyers to own a property. Some tax provisions or subsidies of the housing industry include the tax deductibility of the interest rate of mortgage paid by homebuyers. They could deduct from $1 million for mortgage loans and as much as $100,000 to home equity loans.

In addition to that, housing taxes are deductible together with points that are paid at closing for those buying a home for the first time. Nevertheless, there are conditions that have to be satisfied first. In most cases, the capital gain tax exemption is made when one sells his or her home. While housing subsidies have helped many people own a home, most believe that subsidizing a big percentage of the losses in houses is inviting more problems later on. In line with this, housing tax subsidies must be reviewed and studied carefully.

A major concern is the tax deductibility of the mortgage rate interest. The interest rate of mortgages is estimated to cost the government $600 billion from 2009 to 2013. These figures are computed based estimates created by the Joint Committee on Taxation. Another housing tax subsidy costing billions to the government is the tax deductibility of real estate taxes. Moreover, there is also the dismissal on taxes for money derived through home selling. When combined, these items could cost the US government $20 billion estimate from 2009 to 2013. Those who support these subsidies claimed that these tax incentives have helped increase the rates. Those who are against these incentives think that these tax incentives has helped misconstrue the prices of housing and have stripped the government of much needed funds.

Some of the government programs subsidizing the housing industry include the FHA and VA loans. FHA loans are insured by the government for people with low income to own a home. With the assistance of the FHA, people who belong to the low-income level will be given the chance to buy a house. In many cases, the down payment needed by lenders is waived and the interest rates are much lower. In case of a default, the lender will go after the FHA that insures the loan to recover unpaid mortgages. The VA loan is designed to provide veterans and other qualified personnel a more affordable way to buy a home. This kind of loan is backed by the US Veterans Administration. All you have to do is to simply submit the pertinent documents that prove that you qualify for said program. Similar to the FHA loan, in case of default, the lender will go after the VA.
Discover the best of everything in Glendale AZ Waterfront Property, green homes in Glendale AZ Green Homes and rent homes in Arrowhead Lakes Rental Properties.

Related Articles



Actions
Print This Article
Add To Favorites



Sponsors

 

 

© All rights reserved to Real Estate Pro Articles