The "American Recovery and Reinvestment Act" (stimulus bill) provides for an additional $500 million to existing USDA Rural Housing Programs. The RHS provides a guaranteed loan program and a direct loan program for those meeting the program eligibility criteria. The direct loan program will receive $270 million while $230 million will be allocated for unsubsidized guaranteed loans. It has been reported that this level of funding would provide for an additional 192,000 homeowners.
Previously the "First-Time Homebuyer Tax Credit" did not include loans financed with state/local bond funding. However a recent change allows up to $8000 tax credit for these loans. Please see a previous post I did for the details on the tax credit guidelines.
Income limit for individuals with adjusted gross income of no more than $75,000 and $150,000 on a joint return.
If you are considering an investment in a home, the prices are very attractive. Combined with the homebuyer tax credit and the possibility of all or most of the closing costs being paid on the purchase of a foreclosure home, you may want to talk to a Realtor.
Please consult a professional lender that participates in the USDA Home At Last Program for guidelines and a financial advisor.
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