The new $787 billion American Recovery and Reinvestment Act of 2009 will help home buyers, as well as homeowners. It includes the following:

Home Buyer Tax Credit-Under the bill, first-time home buyers can receive a tax credit for 10 percent of the value of a home, up to $8,000. The tax credit applies to first-time buyers who purchase a home from Jan. 1, 2009 to Dec. 1, 2009. Buyers don't need to repay the tax credit unless they sell their home within three years.

FHA, Fannie Mae, and Freddie Mac Loan Limits -The bill reinstates higher loan limits for FHA, Fannie Mae, and Freddie Mac that were first introduced in 2008, making loans more affordable for consumers no matter where they live.

Neighborhood Stabilization-An additional $2 billion in funding for the Neighborhood Stabilization Program will enable local governments to purchase, manage, and repair foreclosed and abandoned properties and sell them to home buyers at affordable prices.

Low-Income Housing Grants-The bill allows states to trade in a portion of their 2009 low-income housing tax credits for Treasury grants to finance the construction or acquisition and rehabilitation of low-income housing.

Tax-Exempt Housing Bonds-Tax-exempt interest earned on specified state and local housing bonds issued during 2009 and 2010 will not be subject to the Alternative Minimum Tax.

Energy-Efficient Housing-Through 2010, homeowners will be able to claim a 30 percent tax credit (up from 10 percent) for purchases of new furnaces, windows and insulation.

If you would like more information about how this recently passed legislation can help you, please contact me.