We had the economic stimulus package provided by Congress in February. Did you feel stimulated? No? I know that I did’t.

It is widely felt that a second economic stimulus package is necessary. The timing is an issue. Will the lame duck Congress try to do something meaningful before the next Congress is sworn in? Will the lame ducks leave the job to the next Congress? How quickly will this get done?

One proposal that should be part of any economic stimulus package has to do with assistance for home buyers. The last stimulus package include a tax credit of $7,500 to first time home buyers. The downside of that tax credit is that it needs to be repaid (interest-free) over a period of years. That provision makes the tax credit much less attractive.

Part of the proposal for the next stimulus package is to make the tax credit non-repayable. A gift, if you will. Like the stimulus check that you got under the first stimulus package.

Not only would it be non-repayable, but the proposal is to increase the amount to $10,000-12,000. And here is the big payoff, the credit could be monetized and used up front as part of the down-payment. You could borrow the money just like an income tax refund loan and pay it back when you actually receive it when you do your tax return.

These are proposals being put forth by the National Association of REALTORS and the National Associaton of Home Builders. We will have to wait and see what kind of traction these proposals gain.