With the recently passed American Recovery and Reinvestment Act of 2009, expected to be signed as soon as it hits the President's desk, many are wondering what might be in it for them.
Well, with $790,000,000,000 there is room for a LOT of people to find a bit of cash. These are the ones that directly relate to housing:
- The First Time Home Buyer Tax Credit was raised to $8,000 and the repayment has been waived unless the home is sold within three years (previously capped at $7500 and required repayment at the rate of $500/year)
- The time period was also extended for the FTHBTC so that it runs through Dec. 1st, 2009 (previously set to run out July 1st)
- The Upper Loan Limit was restored for Fannie Mae, Freddie Mac and FHA at $729,750 (this had expired Jan. 1st)
- The USDA also received $200M for their Rural Housing Insurance Fund. This will support $11.5B in single family home loans
- $2B was earmarked for the Neighborhood Stabilization Plan. This money will help state and local governments, as well as non-profits purchase and rehabilitate foreclosed and vacant properties.
In other news, $50B from the TARP funds will go to foreclosure prevention.