H.R. 3221 is Signed into Law

On July 30, the President signed into law the "Housing and Economic Recovery Act of 2008". While there are a number of provisions aimed at reducing the risk of foreclosure for individuals and various reforms affecting the FHA program and Freddie Mac and Fannie Mae, there is one provision that may be significant to home buyers. "Qualified" home purchases during the period April 8,2008 and June 30, 2009 will allow the purchaser to claim a $7500 tax "credit" on their federal tax return. The "credit" is repayable over 15 years, in effect making it an interest free loan from the federal government.