RESTON, VA – The Kitchen Cabinet Manufacturers Assn. (KCMA) has joined Fix Housing First, a coalition formed to push for a housing recovery plan that will revive the economy.
“Until the housing issues addressed by the Fix Housing First proposal are resolved, the U.S. economy will continue its negative spiral. Adoption of these proposals will provide huge positive impetus for the overall economy,” said Dick Titus, KCMA executive vice president.
Fix Housing First, which consists of more than 600 organizations, home building companies and manufacturers, and continues to add new members on a daily basis, is pressing for a major stimulus package to stem the decline in home values, stabilize financial markets and reignite consumer demand. To get the economy moving again, the coalition is urging Congress to support enhancements to the home buyer tax credit and provide below-market 30-year fixed-rate mortgages for home purchases.
The coalition is calling for significant enhancements to the current $7,500 tax credit for first-time home buyers. Among the improvements:
-All primary home purchases between April 9, 2008, and Dec. 31, 2009, would be eligible.
-The credit amount would be increased to 10% of the price of the home, capped at 3.5% of FHA loan limits, bringing the credit to a range of roughly between $10,000 and $22,000.
-The current recapture provision would be eliminated. Repayment would only be required if the home were sold within three years. The credit would be available at the time of closing, making it easier to be used as a down payment.
The second component of the stimulus plan would provide qualified home buyers with 30-year fixed-rate mortgages at 2.99% on contracts closed until June 30 and 3.99% on closings between June 30 and Dec. 31. The coalition has also announced its support for continuing foreclosure prevention measures to keep people in their homes.
To learn more about Fix Housing First, visit www.fixhousingfirst.com.
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