Tina Smith: “today I introduce important legislation to enable more Americans to realize the dream of homeownership. The First- Time…”

“today I introduce important legislation to enable more Americans to realize the dream of homeownership. The First- Time Homebuyers' Tax Credit Act that Senator Stabenow and I are introducing would give a one-time tax credit that will help more Americans to become homeowners. Homeownership brings safety and stability to families and their communities. People who own their homes have the security of knowing that they have a reliable investment, and they are protected from spikes in housing costs. Yet despite these advantages, barriers exist for many who are looking to make the leap to homeownership. Even for families and individuals who can make monthly mortgage payments, down payment and closing costs can prove too great a burden. Based on information from the Mortgage Bankers Association, the average loan of $175,000 would incur closing costs of approximately $4,000. Combined with even a modest down-payment of as little as 3 percent of a home's value, total costs can quickly approach $9,000 or more. To help Americans achieve the dream of private homeownership, the First-Time Homebuyer Bill would provide a tax credit of up to $3,000 to individuals and up to $6,000 for families falling within or below the 27 percent tax bracket. The bill would allow first-time homebuyers to claim the credit on their tax return or transfer the credit directly to the lender at closing, providing an immediate benefit to potential homeowners.…”