Feng Liu-Winham

Just got a e-mail message from the National Association of Realtors. It outlined some benefits for homeowners and investors in Obama's stimulus plan. And I'd like to share with you.

1) in high cost areas, loan limits will be raised to $727,000.

2) the tax credit will be raised to $8,000 with NO payback, therefore, it will be a true credit.

3) interest rates will come down 125-150 basis points.

4) the bill has over $50 billion in it for foreclosure mitigation. On top of that, Geitners Treasury plan signaled that the second half of TARP and TALF would be used to mitigate foreclosures through a government guarantee, drive down interest rates by buying another $200-300 billion of mortgage paper from the GSES's thereby freeing them up to do the same with new mortgages.

5) Fanniemae has just agreed to lift the cap of 4 investment properties eligible for loans and raise it to 10.

Unfortunately, the highly anticipated $15,000 buyers' credit did not get through. It was considered "too rich" for this package. Go figure!

Well, the information on the stimulus package and the housing market is so wild these days. It is so hard to tell the truth from the rumor. Tomorrow I am attending a conference on what Obama plan is trying to do. I will let you know more in next message.

I have been excited about the tax credit for the first-time home buyer and wanted to share with my readers. A few days ago, I got the document from one of my loan officer friends, Cristina Werdal. The document details who is eligible and how the tax credit can be filed for.

Here it is:

First-Time Home Buyer Tax Credit Fact Sheet

Who is Eligible

􀂃 The $7,500 tax credit is available for first-time home buyers only.

􀂃 The law defines a first-time home buyer as a buyer who has not owned a home during the past three years.

􀂃 All U.S. citizens who file taxes are eligible to participate in the program.

Income Limits

􀂃 Home buyers who file as single or head-of-household taxpayers can claim the full $7,500 credit if their adjusted

gross income (AGI) is less than $75,000.

􀂃 For married couples filing a joint return, the income limit doubles to $150,000.

􀂃 Single or head-of-household taxpayers who earn between $75,000 and $95,000 are eligible to receive a partial

first-time home buyer tax credit.

􀂃 Married couples who earn between $150,000 and $170,000 are eligible to receive a partial first-time home buyer

tax credit.

􀂃 The credit is not available for single taxpayers whose AGI is greater than $95,000 and married couples with an

AGI that exceeds $170,000.

Effective Dates for the Tax Credit

􀂃 First-time home buyers would receive a $7,500 tax credit for the purchase of any home on or after April 9, 2008

and before July 1, 2009. To qualify, you must actually close on the sale of the home during this period.

Tax Credit is Refundable

􀂃 A refundable credit means that if you pay less than $7,500 in federal income taxes, then the government will write

you a check for the difference.

􀂃 For example, if you owe $5,000 in federal income taxes, you would pay nothing to IRS and receive a $2,500

payment from the government.

􀂃 If you are due to receive a $1,000 tax refund from the government, your refund would grow to $8,500 ($1,000 plus

$7,500 from the home buyer tax credit).

􀂃 Buyers can take the tax credit in their 2008 or 2009 tax return.

􀂃 If you purchased the home in 2008, the tax credit is taken in your 2008 tax return. If you buy in 2009, you have

the option of taking the credit on your 2008 or 2009 tax returns.

Types of Homes that Qualify for the Tax Credit

􀂃 All homes, whether single family, townhomes, condominium apartments will qualify, provided that the home will

be used as a principal residence and the buyer has not owned a home in the prior three years. This also includes

newly-constructed homes.

Payback Provisions

􀂃 The tax credit essentially serves as an interest free loan to be repaid over 15 years.

􀂃 For example, a home buyer claiming a $7,500 credit would repay the credit at $500 per year. If the home owner

sold the home, then the remaining credit would be due from the profit of the home sale.

􀂃 If there was insufficient profit, then the remaining credit payback would be forgiven.

Good luck and enjoy.

Have you heard that a breed of loan modification had come into being? It is true, thank to the incoming administration that has recognized that loan modification is part of the solution to treat our nation's housing. Therefore, it is an amazing instrument to help homeowners with adjustable rate mortgages to lower their monthly payments.

Loan Modification is not refinancing. In the process, the value of your house is not essential and , you, the home owners' credit is not imperative. What is important is to act.

Do not think it is just your personal issue; it is the plague of the nation. We have had enough foreclosures. Let's work together to stop foreclosure one at a time. I am here to help. I provide my service with no upfront fee and no gimmicks. Do your part. It is patriotic.