New home construction loan to be paid for by tax cuts

By Wired staffSeptember 12, 2018 07:45:30The US government is considering allowing homeowners to take out new loans against their homes as it aims to boost home construction.

The idea was first floated last year, but a proposal for a tax cut that was passed in January has pushed the plan to the forefront again.

The Treasury Department said on Tuesday that it will allow homeowners to make home construction-related loans against the value of their homes.

It would allow homeowners who earn more than $1 million per year to take on new loans in the next two years, to offset a tax break they will receive in 2021 that reduces their taxable income.

The Treasury would also allow borrowers who are in higher-earning brackets to make these loans.

The government is also considering a similar tax break for investment property and a loan for homebuyers in the mid-$400,000s.

More to come.

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