In this July 24, 2009, photo, a pending home sale in Palo Alto, Calif., is shown.  (AP Photo/Paul Sakuma)

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• Senate Extends Jobless, Homebuyer Benefits
• How To Apply For Homebuyer Tax Credit

(AP)  Buying a home is about to get cheaper for a whole new crop of homebuyers - $6,500 cheaper.

First-time homebuyers have been getting tax credits of up to $8,000 since January as part of the economic stimulus package enacted earlier this year. But with the program scheduled to expire at the end of November, the House voted 403-12 Thursday to extend and expand the tax credit to include many buyers who already own homes. The Senate approved the measure Wednesday, and President Barack Obama is expected to sign it.

Buyers who have owned their current homes at least five years would be eligible for tax credits of up to $6,500. First-time homebuyers - or anyone who hasn't owned a home in the last three years - would still get up to $8,000. To qualify, buyers in both groups have to sign a purchase agreement by April 30, 2010, and close by June 30.

"This is probably the last extension," said Sen. Johnny Isakson, R-Ga., a former real estate executive who championed the credits.

The homebuyers tax credit is one of two tax breaks totaling more than $21 billion that was included in a bill extending unemployment benefits for those without a job for more than a year. The other would let companies now losing money recoup taxes they paid on profits earned in the previous five years.

"We are still in a world of economic hurt, and Congress must continue to act boldly and creatively," said Sen. Max Baucus, D-Mont., chairman of the Senate Finance Committee. "With the right mix of tax breaks and investments we will get through this recession and get folks working again."

The real estate industry has been pushing to extend and expand the housing tax credit. About 1.4 million first-time homebuyers have qualified for the credit through August. The National Association of Realtors estimates that 350,000 of them would not have purchased their homes without the credit.

Extending and expanding the tax credit for homebuyers is projected to cost the government about $10.8 billion in lost taxes. While the measure passed the Senate by a 98-0 vote, Sen. Kit Bond, R-Mo., questioned its efficiency in stimulating home sales.

"For the vast majority of cases, the homebuyer tax credit amounted to a free gift since it did not affect their decision to purchase a home," Bond said. "And for the small minority of buyers whose decision was directly caused by the credit, this raises the question of whether we are subsidizing buyers who may not have been able to afford buying a home in the first place."

The credit is available for the purchase of principal homes costing $800,000 or less, meaning vacation homes are ineligible. The credit would be phased out for individuals with annual incomes above $125,000 and for joint filers with incomes above $225,000.

The credit would be extended an additional year, until June 30, 2011, for members of the military serving outside the United States for at least 90 days.

Expanding the tax credit for money-losing companies is projected to cost $10.4 billion.

The business tax break would allow money-losing companies to use current losses to offset taxable profits earned in the previous five years, giving them refunds of taxes paid in those years. Under current law, businesses with annual gross receipts of more than $15 million can claim losses back only two years.

The tax break would help industries suffering losses in 2008 or 2009, including retailers, homebuilders and newspapers. Congress included a scaled-back version of the tax break - for companies with revenues of $15 million or less - in the economic recovery package enacted in February. The new tax break would be available to companies of any size, providing a quick source of cash.

The U.S Chamber of Commerce has been a big backer of the tax break for money-losing companies.

"It frees up capital that they can use to maintain jobs and potentially even hire new people as the economy returns," said Caroline Harris, senior tax counsel for the U.S. Chamber of Commerce.

The tax breaks would be paid for largely by delaying a tax break for multinational companies that pay foreign taxes. It was passed in 2004 and originally was to have taken effect this year, but would now be delayed until 2018.



The bill is H.R. 3548.

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Happy Halloween!

HHS Provides More Than $2.6 Billion to States to Help Low-Income Households with Energy Costs

HHS Secretary Kathleen Sebelius today announced the release of more than $2.6 billion to states to help low income citizens with their heating bills during October, November and December of this year. These funds represent grants to states, tribes and territories under the Low Income Home Energy Assistance Program (LIHEAP).

"By releasing this money now, we are helping to provide needed assistance to millions of Americans who otherwise might not be able to afford heat this winter," Secretary Sebelius said. "This program helps to offset seasonal energy costs for low income families, leaving more of their income to use for other necessities."

LIHEAP helps eligible families pay the costs of heating and insulating their homes in the winter, and cooling their homes in the summer. HHS is releasing such a large allocation of LIHEAP funds now in order to ensure that states have resources available to support their energy assistance programs as the weather turns colder.

"Each year LIHEAP helps more than five million low income households deal with energy costs," said Carmen Nazario, assistant secretary for children and families. "We will continue to work with states, tribes and territories to assure their heating assistance programs work effectively."

For a complete list of state allocations of the funds released today go to http://www.acf.hhs.gov/news/press/2009/liheap_2010.html.

Individuals interested in applying for energy assistance should contact their local/state LIHEAP agency. For more information, go to http://www.acf.hhs.gov/programs/liheap/ or http://www.acf.hhs.gov/programs/ocs/liheap/brochure/brochure.html.

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FHA Refinance

Learn About Your Mortgage Options

Homeowners enjoy the benefits of investing in their property year after year. For some, there comes a time when that investment can come in handy. Refinancing with an FHA loan can prove to be an effective way to put that equity to work.

Sending a child to college, consolidating bills, taking a much needed vacation, or making home improvements are some of the ways homeowners tap into the equity they have accumulated in their home to help with these expenses. Keep in mind that FHA refinancing is only available to homeowners who are currently using their home as their principal residence.

FHA offers several different options to homeowners who are considering an FHA refinance mortgage:

FHA REFINANCE: CASH OUT REFINANCING

This refinancing option is especially beneficial to homeowners whose property has increased in market value since the home was purchased. A Cash Out refinance allows homeowners to refinance their existing mortgage by taking out another mortgage for more than they currently owe, therefore repaying their current mortgage and using the equity they have built up in their home to take out another larger mortgage. This allows the homeowner to access the equity they have built up in their home and put it to good use where needed.

In order to get the most benefit from refinancing your mortgage, it is often best to consider refinancing after you have had time to build up a significant amount of equity in your home. If the property was purchased more than one year prior to the refinance, the homeowner can refinance the existing mortgage for up to 85 percent of the appraised value plus the allowable closing costs, which vary from state to state.

FHA REFINANCE: STREAMLINED REFINANCING

This refinancing option is considered streamlined because it allows you to reduce the interest rate on your current home loan quickly and oftentimes without an appraisal. FHA Streamlined Refinance also cuts down on the amount of paperwork that must be completed by your lender saving you valuable time and money.

In order to qualify for a Streamlined Refinance your original home loan must be an FHA loan in good standing and the refinance must lower your monthly interest payments. This type of refinancing option reduces your monthly expenses by lowering your payments but there is no option to receive cash back. This works well for people who are in good financial standing with no significant debt because it allows you a little extra money each month that can be put to good use elsewhere.

Home Modification Grants for Veterans

Veterans or Service Members who have certain service-connected disabilities may be entitled to a grant from the Department of Veterans Affairs (VA) to construct an adapted home or modify an existing home to meet their adaptive needs. The goal of the Specially Adapted Housing (SAH) Grant Program is to provide a barrier-free living environment that allows the Veteran or Service Member to live independently. An application form can be downloaded from the VA's Web site

Housing Service Coordinator Program

The U.S. Department of Housing and Urban Development (HUD) is offering $20 million in grants to help elderly residents and non-elderly residents with disabilities access the services they need to continue to live independently in their own homes. HUD is making these grants available through its Service Coordinator Program that will support the hiring of service coordinators to help frail and at-risk elderly individuals and persons with disabilities receive health care, meals and other critical support services. The application deadline is November 5, 2009.

Find an Assistive Technology Resource Center in Your State

State Assistive Technology (AT) Act programs work to improve access to assistive technology for individuals with disabilities through comprehensive statewide programs. These programs include device loans, AT reuse, device demonstrations and state financing activities. For examples of how some states have helped people with disabilities get assistive technology visit the Web site of the Association of Assistive Technology Act Programs (ATAP). For a listing of AT manufacturers and distributors in your state visit ABLEDATA.

For more information about assistive technology and its role in increasing the independence of people with disabilities visit Disability.gov's Technology section

Think College

The Think College Web site focuses on three primary areas in postsecondary education for people with intellectual/developmental disabilities-research, training, and technical assistance and dissemination. Doors to colleges all over the country are opening for people with intellectual and other developmental disabilities in many different ways. Intended for transition-age students as well as adults attending or planning for college, the site provides resources and information about training events and offers strategies for talking to others.

More information for parents, teachers and students is available in Disability.gov's Education section.

2009 H1N1 Flu & You

This new brochure from the Centers for Disease Control & Prevention (CDC) describes flu symptoms, emergency warning signs and provides information for people with chronic health conditions or disabilities such as cancer, blood disorders (including sickle cell disease), chronic lung disease, neuromuscular disorders (including muscular dystrophy and multiple sclerosis) and weakened immune systems (including people with HIV/AIDS). For more about the flu visit FLU.gov.

For more health-related resources visit Disability.gov's Health section.