A great think for first-time Home Buyers!
This bill, according to some experts, will increase home buying, and should help to jump-start building or stem the foreclosures that are driving down prices.
This tax credit is similar to a temporary one passed last year by Congress that was for 7,500, BUT had to be repaid.
This one is capped at 10 percent of the home price or $8,000, whichever is less, and restricted to first-time buyers who make purchases before Dec. 1, 2009. After some political wrangling, it was determined the money would generally not have to be repaid, luckily!
The National Association of Realtors (NAR), said the final tax credit provision could stimulate 200,000 home sales.
Also good to help out still some higher priced areas of San Diego, the stimulus bill does temporarily increase loan caps for Federal Housing Administration, Fannie Mae and Freddie Mac mortgages in expensive areas from $625,000 to $729,750. That effectively lowers the cost of borrowing that amount or less, providing "big help" to markets like coastal areas and some inland.
On the not so good side, other real estate proposals pushed by the housing industry and consumer groups - including lowering mortgage rates to around 4 percent and protecting struggling homeowners from foreclosures, respectively - never made it into final versions of the bill in either the House or Senate.
In addition, I have heard that the Obama administration plans to push additional legislation aimed at bolstering the housing industry, probably focused on preventing foreclosures. The plan would seek to lower interest rates for struggling borrowers through government subsidies.
"The housing industry broke first, but it was only a symptom of the underlying problem in the U.S. economy ... a 12-year spending binge based on overinflated values of our homes," said an L.A. Housing researcher
This stimulus bill, which still must pass both houses of Congress and be signed into law by President Obama, also provides billions of dollars for renovating public housing and foreclosed homes and similar projects.
Gustavo Torres
San Diego Realty, Inc
cell 619-632-7045
www.californiaForeclosureTour.com
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