The recent "stimulus" legislation contains a number of provisions designed to help strengthen the real estate market. The major benefit is that first-time home buyers will now be eligible to receive a refundable tax credit of 10% of the home price or $8000, whichever is less. To get the credit, however, you need to purchase your home before December 1, 2009. The term "refundable" basically means that if you only owe $2000 in taxes for 2009, you would get a refund of the remaining $6000; if you owe $0 in taxes, you would get the entire $8000 refunded to you. Finally, you will not have to repay the credit, unless you sell the home within 3 years of purchase. In order to qualify for this credit, you need to meet certain income requirements. To determine whether or not you would qualify, send me an email.
In addition to the home buyer credit, the stimulus package also restored the upper loan limit of $729,750 in high cost areas for Freddie Mac, Fannie Mae, and FHA loan guarantee programs. This is good news for all buyers, even those who might not qualify for the $8000 tax credit, because it will allow lenders to confidently extend credit to more buyers and thus make more home purchases possible in the near term.
Have questions about buying or selling a home in today's market? Contact me and I'll be happy to help you out!
