Barack Obama's First Time Home Buyer Stimulus Package

The economic crisis makes owning a house almost impossible. There is however, hope with the government's program for those who want to have a house. It's the First Time Home Buyer Stimulus Package.

This program keeps the dream of owning a home alive for many Americans. If the First Time Home Buyer Stimulus Package becomes successful, it will dramatically reduce the number of unsold homes in the United States, revive the construction businesses and offer employment opportunities.

This package is comprised of three elements - tax credits, lower interest rates and down payment funding.

The government spurred this program to increase home ownership and help the dying real estate industry at the start of the recession in 2008.

A 10% Tax Credit is for those homeowners who purchased a home between January 1 and December 31, 2009. The credit may be as much as $8,000 depending on the price of the house. Within two years of purchase, the tax credit may already be claimed.

Down payment meanwhile, is usually only 10% of the selling price. This gives the homeowners the chance to spend for home improvement or other expenditures. The loan requirements are also not as strict with lower monthly mortgage. This program is for individuals with up to $75,000 earnings or couples with up to $150,000.

Another part of this stimulus package is the tax rebate on the loan's interest. Owners can make use of this rebate for expenses that are included in their property maintenance hence, also an income tax deduction.

The government is optimistic that this program will help the economy and the people to have their own homes.