Letter to Senator Specter

Dear Senator Specter,

I am writing in regards to the 1st time homebuyers extension that is currently being addressed in the Senate Committee on Banking, Housing, and Urban Affairs. I understand that you are not on this committee but I would like to address a concern.

If the current form of the bill becomes law, it allows current homebuyers to receive a tax credit for purchasing a new home if they have lived in their previous home for 5 or more years.

Admittedly, this would be for my benefit, but I believe that it would be a much stronger bill if it was amended to reduce the 5+ year requirement to 3+ or 4+ years. Based on some quick research, mortgage rates were extremely low during late 2004 and early 2005 (http://money.cnn.com/2005/06/30/real_estate/weekly_rates/index.htm) & (http://mortgage-x.com/general/national_monthly_average.asp?y=2004) thus many new homeowners, including myself, took advantage of this during that time period. Because the proposed extension bill deadline is April 30, 2010 for a new home, those homeowners will not benefit under the current requirement.

I understand that this will add additional cost to the bill since it opens the door for more qualified taxpayers to take advantage of it, but I feel that it still carries the spirit of the bill in helping the housing sector get back on its feet, which translates to a stronger recovery.

If you are in agreement, could you or your staff pass this request of lowering the 5+ year agreement to 3 or 4 years to Senator Dodd for consideration to amend the current form of the bill. I believe this will create a sound financial opportunity for those consumers who knew when to take advantage of a good opportunity three or four years ago to continue the dream of homeownership.