Housing & Economic Recovery Act of 2008

Many of you have been asking what does this law mean to me?? Here is a brief overviewof the key points, please call or email with any questions.

First Time Home Buyer Tax Credit: Eligible first time home buyers from 4/9/08 through 6/30/09 can receive up to a $7500 tax credit on their home purchase. Certain income restrictions apply and the credit is paid back over the next 15 years on your income taxes. It is in essence, a tax-free loan from the government.

FHA Reform: Recently FHA insured loans have come back into the market as a prime method of financing. Inspection requirements have being lowered so that most homes can get approved for an FHA loan. FHA loans levels have been increased in all areas. VA loan limit have also been increased temporarily.

FHA Foreclosure Rescue: This is a refinance program for only primary residence homes. Lenders have to agree to write down the value of the mortgage and FHA will lend up to 90% of the home’s appraised value with a limit of $550,440 nationwide. Borrowers must share 50% of the home’s future appreciation with the FHA. The program comes into effect on Oct. 1, 2008. If you are in this situation, please give us a call so we can confidentially get you to the appropriate contact for this program.

Property Tax Deduction: For property owners who do not itemize their tax deductions but do pay property taxes are eligible for a $500 tax deduction ($1000 deduction for married couples) on their 2008 returns. This will be very beneficial to people who do not have a mortgage.

For more information on the above programs, please let us know. As always, please contract mewith any questions or comments. I look forward to assisting you in your real estate needs in the future.