It's been about a three months since Obama's stimulus plan was first announced and then the details revealed on March 4th. It does seem to be having a benefit in boosting sales activity in Montrose and the other Western Slope communities we serve. And now there's more talk about improving upon it, by allowing its use as a down payment for FHA loans, and there's a push to get it extended beyond November 30, 2009, increased to $15,000, and to expand it to all buyers, not just first-time home buyers. I'll report more on that if and as anything changes.
In the meantime, what suprises me is how many consumers and even industry affiliates to whom I and my broker associates have talked to recently are still not aware of what is being offered, despite the plethora of news reports, blogs, and media coverage on the subject. So, I'll summarize very briefly here what the Homeowner Affordability and Stability Act may be able to do for you.
There are 3 components: (1) The $8,000 tax credit to first time home buyers (which is anyone who has not owned a home in 3 yars); (2) Refinancing; and (3) Loan Modifications.
Regarding the tax credit, it is not money made available to you to purchase your home--yet. But if you purchase one between 1/1/09 and 11/30/09 (i.e., before December 1st of this year), you can apply for the credit on your 2009 tax return (or on your 2008 one if you haven't filed it yet and have already purchased your home this year). You can then apply the credit against taxes owed, and if you don't use up the entire credit, you get a refund. Then, you can use that refund toward your new home, like upgraded appliances, landscaping, fencing, fix-ups, etc., or for whatever other purpose not related to your new home. For more information, consult with your tax advisor and visit the Tax Credit Web Site.
Regarding the loan modifications and refinancing, both of these programs are intended to assist distressed homeowners who want to and are able to keep their home. The loan modification will allow a homeowner to renegotiate and revise the terms of the existing loan or loans in order reduce payment amounts. The refinancing is intended to help those homeowners who have been precluded from refinancing or consolidating loans because their home has depreciated in value and the existing loan or loans are now more than 80% of the value of the home. Call the Homeowner's Hope Line at 1-888-995-HOPE (4673) for more information and to see if you qualify for loan relief. Or check out Making Homes Affordable.
If you're looking to buy in the Montrose area, this is a great time to do it, not only because of the tax credit and still historically low interest rates, but because we have lots of inventory of relatively affordable homes to choose from. Don't let this opportunity to own a home, or buy up or down, pass you buy!
Wishing you all find some relief,
Ninah
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