After months of discussion, argument and lobbying for and against the housing stimulus package-it was signed into law on July 31, 2008. The stimulus package has been called one of the most important federal housing policies in a generation addressing: the foreclosure and credit crisis, providing new oversight as well as structural reforms for the GSEs, improving LIHTC regulations through careful revisions, increasing bonding capacity, and creating a national housing trust fund.

For first time home buyers, the enactment of this particular piece of legislation means a tax credit in the amount of $7,500 as a direct result of the purchase of a home. Eligible home purchases must be made between April 9, 2008 and July 1, 2009. A first time home buyer is defined (for the purposes of this tax credit) as being anyone who has not owned a home in the past 3 years. The tax credit is central to the package and has been receiving a lot of attention from industry experts as well as buyers themselves; many of which see the tax credit as the bonus that tips the scales towards buying a home now.

Those who oppose the bill point at the elevation of the national debt. They point at the guarantee given to two mortgage giants, Fannie Mae and Freddie Mac. They discuss the fact that these two mortgage giants are private companies with publicly traded stock. One of the main criticisms of the package is the inclusion of this guarantee that the government will provide monetary aid to the two companies as necessary. Critics argue that this is providing the opportunity for private profits without provide risk and loss. They argue that the risk and loss has become the responsibility of the general public. They note the estimated $25 billion that is to be spread out over the next two years in the federal budget and shouldered by the tax paying public.

The National Association of Home Builders was one of the main supporters of the stimulus package believing that it is exactly what the industry needs to restore buying confidence and stimulate the market by giving new home buyers a reason to buy now.

Ridiculously high numbers of foreclosures indicate that something needed to be done. The stimulus package seems more than appropriate when you consider that actual numbers. For instance, in California alone there were more than 210,000 foreclosed residential properties at the end of March 2008. The stimulus package will provide aid for this extreme situation with $365MM in direct funding, and leverage over $780MM (additional grants). It will generate 6,500 new jobs and offer $10 billion in returned property taxes.

New home builders seem to be unanimous in their support of the new bill. Anthony Montalbano, Owner of Montalbano Homes, stated, “The bill is a necessary measure. It’s not only aiding the housing industry. Due to the housing industry’s fundamental nature, we’re talking about aiding the economy as a whole through this opportunity to correct the problems created by the recent explosion that swept through the nation’s real estate.”

Experts, industry leaders, politicians…everyone has their own view of the stimulus package, but one thing can’t be argued. That one item that is indisputable is that fact that home buyers have a unique opportunity through June of 2009 to take advantage of the offered tax credit. It’s not difficult, it’s not out of reach and while it’s for a limited time, it isn’t an obscenely short period of time. Buyers in the know will recognize the opportunity and take advantage of it before it’s too late.