Manhattan (NY) Loan Limits Return to $729,750 until 12/1/09

The House and Senate passed the stimulus package called the "American Recovery and Reinvestment Act of 2009" President Obama signed the bill on Tuesday.

While many real estate professionals and home buyers were hoping for a $15,000 tax credit for all home buyers without income caps that was introduced in the Senate unfortunately the final bill only includes an $8000, tax credit for first time home buyers that earn less than $75,000 per year ($150,000 on a joint return).

The bill includes a return to the higher temporary loan limits put in place for Fannie Mae, Freddie Mac and FHA. during 2008. In 2009 the limits went down to $625,000 for New York.

The bill allows Fannie Mae and Freddie Mac to once again purchase and guarantee loans of up to $729,750 in high-cost areas such as Manhattan. This applies to purchases after Jan 1, 2009 until December 1, 2009.

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Courtesy of:

Mitchell J Hall, Associate Broker, REALTOR® Coldwell Banker Previews International

©Mitchell Hall 2006-2009

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