In The News
Stimulus Plan Includes Homebuyer Incentives
February 15, 2009 by Mortgage Align · Leave a Comment
As the stimulus package passed the house today and headed to the senate, first-time homebuyers are poised to benefit at the bill’s expected passing.
According to a summary of the bill’s provisions, the bill includes an $8,000 tax credit for first-time homebuyers that will not have to be paid pack. This is an improvement over the current $7,500 tax credit approved last year, which had to be paid back gradually over a period of 15 years and was set to expire in July 2009. The new tax credit provision will be avaiable to first-time homebuyers (buyers who haven’t owned a home for the past three years) who purchase between January 1, 2009, and December 1, 2009.
While the National Association of Realtors was hoping for more, it was thankful for the extension and expansion of the credit, which is expected to stabilize home values and encourage over 200,000 home sales.
“Eliminating the repayment provision…will help bring buyers to the market and reduce housing inventory,” said NAR President Charels McMillan in a statement released today.
Other bill provisions of interest to homeowners and homebuyers include:
- Reinstating conforming loan limits to $729,750 in high-cost areas for FHA loan guarantees.
- Financing for states for construction and rehabilitation of low-income housing.
- Funding for rural housing loan programs.
- Grants for energy efficient housing retrofits, and tax credits for energy efficient upgrades expanded through 2010.
