Yesterday President Obama signed into law the Economic Stimulus Package. Here are some of the highlights: Brought to you by Eric Skinner of Corvallis Metro Mortgage....
Tax Credit for Homebuyers
This is the biggie right now. First-time homebuyers who purchase homes from the start of this year until the end of November 2009 may be eligible for the lower of an $8,000 or 10% of the value of the home tax credit. Remember a tax credit is very different than a tax deduction - a tax credit is equivalent to money in your hand, as opposed to a tax deduction which only reduces your taxable income. The tax credit starts phasing out for couples with incomes above $150,000 and single filers with incomes above $75,000. Buyers will have to repay the credit if they sell their homes within three years.
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Additional Housing-Related Provisions
Landmark Energy Savings - This provision provides $5 Billion for energy efficient improvements for more than one million modest-income homes through weatherization. According to some estimates, this can help modest-income families save an average of $350 a year on heating and air conditioning bills.
Repairing Public Housing and Making Key Energy Efficiency Retrofits To HUD-Assisted Housing-This provision provides a total of $6.3 Billion for increasing energy efficiency in federally supported housing programs. Specifically, it establishes a new program to upgrade HUD-sponsored low-income housing (for elderly, disabled, and Section 8) to increase energy efficiency, including new insulation, windows, and frames.
Expanding Housing Assistance-This provision increases support for several critical housing programs. It includes $2 Billion for the Neighborhood Stabilization Program to help communities purchase and rehabilitate foreclosed, vacant properties.
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More Help for Homeowners in the Future
Another thing to keep an eye on in the coming weeks is President Obama's plan to help struggling borrowers before they are faced with a default on their mortgage. According to reports, the Obama administration is discussing plans to help borrowers who are struggling to stay afloat, but who have not yet fallen behind on their payments. At this point, details are scarce; however, reports indicate that President Obama is looking to spend approximately $50 Billion to directly help homeowners before they face foreclosure and financial disaster. While this is good news for individual homeowners, it will likely be good for the housing industry as a whole, as it could help to stabilize the market.
Best Regards,
Eric Skinner, Loan Officer
815 NW 9th Street, Suite L-196
Corvallis, OR 97330
541-760-7376 office
eric.skinner@metrocitiesmtg.com
www.corvallismetro.com
A promise made builds hope, a promise kept builds trust. Great service is my promise!
Eric is a loan Officer and works out of the Keller Williams Realty Mid Willamette offices in Albany and Corvallis. Kaire Downin is a licensed broker in the state of OR and is working with Keller Williams Realty Mid Willamette. Each office is independantly owned and operated.
