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Housing Bill Signed (Further Details)

By
Real Estate Agent with Diane Turton Realtors 0017668

On Wednesday, July 30, 2008, President Bush signed into law the Housing and Economic Recovery Act of 2008. After many deliberations and negotiations a comprehensive bipartisan housing stimulus bill was agreed upon.

Some of the major components of this legislation includes improved oversight of Fannie Mae and Freddie Mac and permanent increases to the conforming loan limits set at $625,500 for FHA and GSEs. The legislation takes effect immediately upon enactment, but the loan limits will not go into effect until the expiration of the Economic Stimulus Act limits on December 31, 2008.

As part of this housing bill, Congress has created a new, temporary tax credit to provide an incentive for first-time home buyers. The $7,500 credit will be available for the purchase of principal residences on or after April 9, 2008 and before July 1, 2009. PLEASE NOTE: THIS INFORMATION IS ACCURATE BASED ON INFORMATION AVAILABLE AS OF JULY 30, 2008. AS WITH ANY TAX LAW CHANGE, CHECK WITH A TAX ADVISOR IF THERE ARE QUESTIONS ABOUT USING THIS PROVISION.

For more information regarding the first-time home buyer tax credit, view a quick facts chart or download the Q&A.

This legislation also temporarily increases the VA home loan guarantee loan limits through December 31, 2008 to the same level as the Economic Stimulus Act limits.

For more information regarding a summary of key provisions of H.R. 3221 please visit: www.realtor.org/gapublic.nsf/pages/hr_3221_key_provisions?OpenDocument

Click here to read the statement issued by NJAR® Executive Vice President Jarrod Grasso in support of the Housing and Economic Recovery Act of 2008.

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