The stimulus bill has passed and though it did not contain a tax credit for all buyers it did enhance and extend the tax credit for first time buyers. This will help us gain some more traction in the real estate market and will help free up more sellers who will then be able to take advantage of the great opportunities in the market today. It is time for us to get busy.
Mike Riedmann
NPDODGE.com
Economic Stimulus Bill Update The Economic Stimulus Bill
(H.R. 1.) has been passed by the US House of Representatives and US Senate. The bill has been forwarded to the president for his signature, which is anticipated no later than Monday, February 16. The information listed below will take effect with the signature of the president.
There has been some confusion regarding the final language of the first-time homebuyers tax credit.
Please click here for the final version of the homebuyer tax credit as sent to the president. Look at the right-hand column of the chart.
1. First-time Homebuyer Tax Credit - an $8000 tax credit (it was changed from $7500) that will be available for qualified purchase of a principal residence by a first time homebuyer between January 1, 2009 and December 1, 2009. The credit does not require repayment. Individuals who purchase in 2009 using financing assistance from state and local mortgage bonds will be permitted to use the credit, as well. (See chart listed above.)
2. FHA, Fannie and Freddie Loan Limits - Revised loan limits for FHA, Freddie Mac, and Fannie Mae. Specifics have not been released but reports indicate that the 2008 limits have been reinstated for 2009 except in those communities where the 2009 limits are higher. Additional increases in individual communities may also be available at the discretion of the HUD Secretary.
3. Foreclosure Mitigation & Neighborhood Stabilization - Funding for states and local communities to be used for neighborhood stabilization activities for the redevelopment of abandoned and foreclosed homes are authorized. These elements of the American Recovery and Reinvestment Act of 2009 are the pillars of the NAR Housing Stimulus Plan presented to the 111th Congress.
Additionally, we continue to work closely with the Department of Treasury and Secretary Timothy Geithner to implement a mortgage buy-down program. NAR also recommended that the Treasury Department expand the Term Asset-Backed Loan Facility (TALF) to include commercial mortgage-backed securities as eligible collateral. The Treasury has approved this recommendation and this will encourage investment in the commercial real estate market.
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