It's three years, I will live there for at least that long. I haven't lived in my other house for seven years. I'm an accountant, I know the rules


As for capping it, which if I"m understanding what you're saying it would be setting a minimum, not a cap. A cap would be setting the upper limits, not the lower. There is more to it... it's 10% of the purchase price with a maximum of $8,000. You can't buy a $50,000 house and get $8,000. I'm not sure I see your points as to how this would effect foreclosures though.