New Stimulus Package!

By
Real Estate Agent with Harry Norman Realtors


 President Bush will now sign the Economic Stimulus package into law. Last week, Congress gave overwhelming final approval to the Economic Stimulus Package supported by NAR and REALTORS® across the country. As a result, the government will be sending payments to most American households and grant tax incentives for business investment.

The legislation includes the requested GSE and FHA limit increases strongly backed and lobbied by NAR(National Association of Realtors) . The increased GSE loan limits means borrowers will see immediate relief with new liquidity in the mortgage market and the nation will see an additional 300,000 home sales. The increased FHA loan limits means an additional 138,000 Americans will purchase homes, and with the needed FHA reforms means 200,000 families can refinance their homes safely and affordably.

 Over 85,000 REALTORS® contacted the Senate on this issue, and together we made a significant difference.We sometimes forget that we can have such an impact on people and their lives.   Hopefully this will be a great relief to a lot of people.  

Comments (6)

Jeff Kessler
Austin Homes, Realtors www.OwnAustin.com - Austin, TX
Broker,CLHMS,GRI

Yep.  I guess we will see how this pans out.  Hopefully people buy new things and not pay bills.  Well, that is what the government wants.

J.

Feb 15, 2008 01:52 AM
Tamara Heyward
Self-Help - Durham, NC

I read an article this week that said in a recent survey, most people planned to pay off debt with their tax payment, not go out and buy new things. I am interested to see the details of the tax incentives for businesses. I'm hoping some of the incentives will benefit small businesses, which is what most of us in the real estate industry are.

I'm hoping also that any reforms to FHA loan limits and procedures will help to create stability in the real estate market. FHA backed loans looked sluggish and cumbersome next to the "any-goes" loans we saw over the past few years. I think the FHA missed out on an opportunity to develop good loan programs that provided realistic and safe alternatives for borrowers. They are trying to clean up the mess now; it remains to be seen how well they can do that.

Feb 15, 2008 02:10 AM
Karen Luke
South Metro Property Management, LLC - McDonough, GA
Henry County Real Estate
My bet is that this package won't really stimulate the economy. It will just serve as insulation for folks who plan to hibernate during the upcoming perceived recession.
Feb 15, 2008 02:17 AM
David Ernst
Beach Bum Properties of Florida, LLC - Palm Harbor, FL
I don't know about you but I can spend the tax rebate in no time. The big news is the Fannie Mae and Freddie Mac loan limits going from $417,000 to $729,750. This will give more homeowners a chance to qualify for the many financing programs available on a refinance or purchase basis. Historically, borrowers who needed to borrow more than $417,000 were subject to the tougher underwriting standards of jumbo loans; this legislation will allow qualifed buyer/borrowers more buying power. With mortgage rates still low by historical standards and the real estate inventory at record highs, all the stars are lined up for buyers right now.  
Feb 15, 2008 02:33 AM
Joyce Logan
RE/MAX Achievers - Westerville, OH

Thanks for the posting! It's great news for a lot of people in need. Hopefully, the lucky ones that receive it will spend it to strengthen the enconomy!

Best wishes to you in 2008!

Joyce Logan, Realtor, Westerville, Ohio

Feb 15, 2008 02:42 AM
Tamara Heyward
Self-Help - Durham, NC
I just found out from my husband/accountant that the payment sent to taxpayers will be taxable income, so they will need to pay taxes on it in the next tax year. This was apparently the case when the last payment for families with children was sent out a couple of years ago. I was unaware of the "taxbale income" issue, as I wasn't eligible for that payment. According to my husband, many tax preparers were unaware of it as well, and lots of tax returns were prepared incorrectly in the year following the payment. This is just a little piece of information you can give your clients, to let them know you are on the ball and looking out for them:).
Feb 16, 2008 03:41 AM