Washington Update .......... Loan Limits & Tax Credit
I'd like to thank my friend George Souto for this explanation. This is very timely and important to understand.
As some of you might know by now, the House passed a stimulus bill last week. In my opinion the two key provisions of the House bill is the restoration of 2008 loan limit sand new tax credit. The Senate has not yet passed the entire Stimulus Bill but passed an expansion of the tax credit proposal on 2/4. The proposal would be available to all purchasers (not just first-time homebuyers). The key elements are:
- A tax credit in the amount of $15,000 or 10 percent of the purchase price (whichever ever is less), with the option to utilize it all in one year or spread it out over two years with no repayment, unless the house is sold within the first two years.
- The tax credit is available to all purchases of any home from date of enactment for one full year.
- Able to claim the credit against the 2008 tax return.
- Buyers must occupy the homes for two years as their principal residences.
- Purchases of homes by investors are not eligible.
- Terminates the previous $7,500 Housing Tax credit on the date of enactment.
It is expected that the Senate will pass its entire Stimulus Bill by this week-end. If that happens the House and Senate will then have a conference next week to work out the differences between their bills.
Comments(4)