Real Estate Stimulus Information

First Time Homebuyer Tax Credit:

The new law raises the current maximum $7,500 first-time homebuyer tax credit to $8,000, and extends it at that level through November 30, 2009. It also eliminates
any required repayment to the IRS after 36 months in the home. These enhancements apply to purchases of a principal residence by a first-time homebuyer after
December 31, 2008. Purchases on or after April 9, 2008, and before January 1, 2009, continue to be governed by the original first-time homebuyer credit enacted last
year. The credit phase-outs that start for taxpayers with AGI in excess of $75,000 ($150,000 for joint filers) continues to apply to both years.

Obama's Rescue Plan for Failing Home Owners:

The rescue plan unveiled Wednesday 2/18/09 by President Barack Obama offers $75 billion in incentives for banks and investors to reduce struggling home borrowers' interest rates and make other changes to loan terms. The money will come from the second half the $700 billion federal financial bailout. The goal is to keep 4 million homeowners out of foreclosure and halt free-falling home prices.

To qualify, lenders and mortgage investors would have to agree on a lower interest rate that would be designed to reduce the borrower's mortgage payments to 38 percent of their pretax income. The government would then provide financing to bring that ratio down to 31 percent.
Another piece is designed to help borrowers who are still making their payments on time, but want to refinance into lower mortgage rates.

The big issue is.......not everyone sees this as fair?

Do you?

Here are a few Housing-Related Provisions:

1. Landmark Energy Savings
*Provides $5 Billion for energy efficient improvements for more than one million medium-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.

2. Tax Incentives designed to Spur Energy Savings & Green Jobs
* Designed to help promote energy-efficient improvements in homes by extending and expanding tax credits through 2010

3. Make Repairs to Public Housing and Make Key Energy Efficiency Retrofits To HUD-Assisted Housing
*Provides a total of $6.3 Billion to increase energy efficiency in federally supported housing programs. It establishes a new program to upgrade HUD-sponsored low-income housing (for elderly, disabled, and Section 8) by increasing energy efficiency, including new insulation, windows, and frames.

4. Expand Housing Assistance
*Increases support for several critical housing programs. This provision includes $2 Billion for the Neighborhood Stabilization Program that helps communities purchase and rehabilitate foreclosed & vacant properties.