Resource for Real Estate Tax Credit

ERA Economic Stimulus Resource Center

This section is designed to provide you with the information and resources you need to help your clients understand the benefits and opportunities that are available through the federal government. Whether your clients are trying to buy their first home or save their current home from foreclosure, you can find ways to help them here.

First-Time Homebuyer Federal Tax Credit

The National Association of REALTORS® (NAR) estimates that each home sale, at the median price, generates "approximately $62,000" of economic impact.

Each home sold benefits not only your bottom line, but the health of the overall economy. Below you will find information and resources to help your clients, and potential clients, make the decision that NOW is the time to buy a home!

The American Recovery and Reinvestment Act of 2009 included an enhanced First-Time Homebuyer Federal Tax Credit. The enhanced housing stimulus provides a maximum tax credit of $8,000 for first-time home purchases that occur between Jan. 1 and Dec. 1, 2009. This tax credit does not need to be repaid unless the individual re-sells the home within three years.

• Read the memo from Charlie Young discussing the enhanced stimulus.
• Use this PowerPoint to help explain this part of the housing stimulus to your clients.
• View the Consumer Guide from NAR for a snapshot of the requirements and limitations on the tax credit.
• Send the "First-Time Homebuyers Federal Income Tax Credit Improved and Extended" press release, available in the Feature News/Columns/Bylined Article section of My PR Agent, to inform your community about this opportunity.

Resources:

• NAR First-Time Homebuyer Tax Credit

FHA Allows Tax Credit to Be Monetized Toward Purchase Cost

On May 29, 2009, the U.S. Department of Housing & Urban Development (HUD) announced that the Federal Housing Administration (FHA) will now allow first-time homebuyers to monetize their tax credit for use toward the purchase cost of a FHA-insured home. FHA still requires a minimum of 3.5 percent down payment from other sources. However, the monetized tax credit can be used as an additional down payment or toward closing costs. This allows first-time homebuyers to benefit from the federal tax credit at the time of purchase, instead of waiting until they file their tax return.

Conditions do apply to this rule change and they are outlined in the HUD letter announcing the change.

• Tell your community about this valuable development. Send the "First-Time Homebuyers Can Take Advantage Of Key Change in Housing Stimulus Plan" press release, available in the Feature News/Columns/Bylined Article section of My PR Agent.

Resources:

• Read HUD letter announcing the rule change and outlining all conditions and requirements
• Access IRS Overview and IRS Forms that apply to the First-Time Homebuyer Federal Tax Credit

ERA Save the Dream Initiative

It is no secret that the increased number of foreclosures has had a tremendous impact on home prices, consumer confidence and families across the country. The federal government and the U.S. Department of Housing and Urban Development (HUD) have created resources to help homeowners refinance or renegotiate their mortgages. Alex Perriello, president and chief executive officer, Realogy Franchise Group, has asked that we in the real estate industry take steps to help keep our clients and neighbors out of foreclosure. Here you can access resources designed to help families keep their homes.

• Read the Call-To-Action from Alex Perriello.

Resources:

• Making Home Affordable: Refinance or modify your loan
• HUD Guide to Avoiding Foreclosure
• Hope Now Web site

Realogy President and CEO, Richard A. Smith, will sit on the Business Roundtable Housing Working Group to develop and promote actionable items to revive the housing industry. Read the press release here.

The American Recovery and Reinvestment Act of 2009

The American Recovery and Reinvestment Act of 2009 was signed into law on February 17, 2009. The bill includes several provisions, in addition to the First-Time Homebuyer Federal Tax Credit, that stand to affect the real estate industry.

Resources:

• American Recovery and Reinvestment Act of 2009 - NAR Resource Page

General Federal Government Resources

• Contact Your Senator
• Contact Your Congressman

West Hempstead ERA customer cited at Obama tax speech

• Click here to view the article
• Click here to view the photo of the President with the West Hempstead ERA Customer.

VIDEO: Realogy CEO Talks About Jump-Starting the Housing Market

Realogy CEO Richard A. Smith was a featured speaker at the prestigious Milken Institute 2009 Global Conference on April 28 as part of a lively panel titled "Jump-Starting the Housing Market." During the hour-long panel discussion, Smith stated that while the Obama administration has focused on the foreclosure issue, the solution to the problem is on the demand side. Smith demonstrated Realogy's thought leadership by explaining how the government could take stronger action by lowering mortgage interest and expanding tax credits from first-time buyers to all homebuyers. Both of those actions would spur home sales activity and thus create a positive overall impact on the economy. The panel was moderated by Fox Business News anchor Brian Sullivan. Follow this link to the Milken Institute site and click "play" to watch the complete panel discussion.

Business Roundtable's Housing Working Group

The Business Roundtable's Housing Working Group, chaired by Realogy CEO Richard A. Smith, announced its recommendations for the White House and Congress that are aimed at jumpstarting the housing market in order to stimulate a broader economic recovery.

The Business Roundtable's recommendations are as follows:

• Keep mortgage interest rates at historically low levels (below 5 percent) for at least one year;
• Expand the current First-Time Homebuyer Tax Credit incentive from the lesser of 10 percent of the purchase price of the home or $8,000 to a higher limit of either 10 percent or $15,000 for all homebuyers, remove the income restrictions and include all primary residence purchases for one full year;
• Conduct a thorough review of current foreclosure mitigation and loan-modification programs in light of rising loan-modification re-default rates;
• Make permanent the current temporary conforming loan limits; and
• Continue to review and strengthen government efforts already underway to review and refine mortgage lending practices.

The Business Roundtable's Housing Working Group is part of the Business Roundtable, an association of chief executive officers of leading U.S. corporations.

Resources:

• Click here to read the letter from Charlie Young
• Click here for the Business Roundtable press release and its Housing Working Group's detailed recommendations.
• Click here to read an article from The Wall Street Journal containing an interview with Richard Smith about the recommendations and why they are crucial to jumpstarting the housing market.