The IRS has released new guidance on the electric vehicle (EV) tax credit, stating that starting next year, low- and middle-income buyers will be eligible for the full $7,500 credit even if they don't have enough tax liability. The changes include making the credit available upfront at the point of sale and allowing buyers to transfer the credit to the dealership. This eliminates the income cap for low and middle-income buyers, making EVs more accessible to them. The changes go into effect on January 1, 2024.
The Biden administration is set to raise mortgage fees for homebuyers with good credit scores in an effort to close the racial homeownership gap and help low-income and first-time buyers. Starting in May, the Loan-Level Price Adjustment (LLPA) matrix will be upended, with riskier borrowers receiving more favorable mortgage terms and good credit borrowers seeing their monthly mortgage payment rise by over $60. Critics argue that the move unfairly penalizes those with good credit and may not effectively address housing affordability challenges. The FHFA has defended the changes, calling them minimal and necessary to ensure government-sponsored enterprises fulfill their role in any market condition.
