After several versions were debated by the House and the Senate, significant changes were made to the Homebuyer Tax Credit of 2008. The credit is still only for the purchase of a principal residence by a first-time home buyer, but the limit was increased to $8,000. More importantly the credit is yours to keep unless you sell the home within 3 years; there is no repayment requirement. Keep in mind, to take advantage of this opportunity you must purchase a home in 2009.
For a complete chart on the differences from the existing law to the new law, click here: Chart Highlighting the Major Modifications to the First-Time Homebuyer
Further stimulus to the housing market includes an additional $500 million in funding for the USDA Rural Housing program. Most purchases today require 20% down but buyers qualifying for the Rural Housing program can still purchase a home with competitive rates and only 2% of the purchase price. It has been reported that this level of funding would provide for an additional 192,000 homeowners.
To learn more about how you might take advantage of both of these programs and purchase a home, please give me a call. Thank you.
Scott McKinney
Trusted Advisor for Real Estate Dreams
715-798-3445 Office
715-580-0093 Cell
scott@mckinneyrealty.net
Monday, February 16, 2009
Monday, February 9, 2009
Comparison of Housing Stimulus Proposals
If you've been following the different versions of the housing stimulus that is currently in place and those proposed by the House of Representatives and most recently the Senate you might be a bit confused by the details. The following chart is helpful to compare and contrast:
Comparison chart: current law/H.R. 1/senate amendment>
Now it is likely that a different form may ultimately be passed in the final stimulus package. Either way, this is good news for all homebuyers.
Stay Tuned!
Scott McKinney
Trusted Advisor for Real Estate Dreams
715-798-3445 Office
715-580-0093 Cell
scott@mckinneyrealty.net
Comparison chart: current law/H.R. 1/senate amendment>
Now it is likely that a different form may ultimately be passed in the final stimulus package. Either way, this is good news for all homebuyers.
Stay Tuned!
Scott McKinney
Trusted Advisor for Real Estate Dreams
715-798-3445 Office
715-580-0093 Cell
scott@mckinneyrealty.net
Wednesday, February 4, 2009
Pending Home Sales Show Healthy Gain
WASHINGTON, February 03, 2009
Pending home sales increased as more buyers took advantage of improved affordability conditions, according to the National Association of Realtors®. Big gains in the South and Midwest offset modest declines in other regions.
The Pending Home Sales Index,1 a forward-looking indicator based on contracts signed in December, rose 6.3 percent to 87.7 from an upwardly revised reading of 82.5 in November, and is 2.1 percent higher than December 2007 when it was 85.9.
Lawrence Yun, NAR chief economist, said the index shows a modest rebound. “The monthly gain in pending home sales, spurred by buyers responding to lower home prices and mortgage interest rates, more than offset an index decline in the previous month,” he said. “The biggest gains were in areas with the biggest improvements in affordability.”
Follow this link for complete article http://www.realtor.org/press_room/news_releases/2009/02/pending_home_sales_show_healthy_gain?LID=RONav0021
Pending home sales increased as more buyers took advantage of improved affordability conditions, according to the National Association of Realtors®. Big gains in the South and Midwest offset modest declines in other regions.
The Pending Home Sales Index,1 a forward-looking indicator based on contracts signed in December, rose 6.3 percent to 87.7 from an upwardly revised reading of 82.5 in November, and is 2.1 percent higher than December 2007 when it was 85.9.
Lawrence Yun, NAR chief economist, said the index shows a modest rebound. “The monthly gain in pending home sales, spurred by buyers responding to lower home prices and mortgage interest rates, more than offset an index decline in the previous month,” he said. “The biggest gains were in areas with the biggest improvements in affordability.”
Follow this link for complete article http://www.realtor.org/press_room/news_releases/2009/02/pending_home_sales_show_healthy_gain?LID=RONav0021
Monday, February 2, 2009
Realtor® Recommendations Make Headway in House
WASHINGTON, January 29, 2009
The U.S. House of Representatives has taken a significant step toward economic recovery in passing H.R. 1, The American Recovery and Reinvestment Act of 2009.
Late last year, the National Association of Realtors (NAR) presented Congress with its core principles for stabilizing the housing market to launch an economic recovery. In the current legislation, NAR strongly supports the provisions to reinstate the 2008 FHA, Fannie Mae and Freddie Mac loan limit increases through 2009. NAR also strongly supports eliminating the repayment requirement on the first-time home buyer tax credit. “This is critical to stimulating home sales and shrinking the housing inventory, which will in turn help stabilize home values,” McMillan said.
The $7,500 tax credit that was passed last year is encouraging some first-time home buyers to become homeowners before the credit expires on July 1; NAR estimates that it will create 66,000 additional sales.
But more can be done, and NAR is working with Congress and the new administration to help buyers, sellers and investors in today’s market.
Currently, the program requires qualified buyers to repay the credit, without interest, over 15 years, essentially giving these buyers an interest-free loan. Eliminating the repayment feature could encourage an additional 202,000 home sales. And if the tax credit were extended to all home buyers without a repayment feature, it could result in an additional 555,000 home sales.
The U.S. House of Representatives has taken a significant step toward economic recovery in passing H.R. 1, The American Recovery and Reinvestment Act of 2009.
Late last year, the National Association of Realtors (NAR) presented Congress with its core principles for stabilizing the housing market to launch an economic recovery. In the current legislation, NAR strongly supports the provisions to reinstate the 2008 FHA, Fannie Mae and Freddie Mac loan limit increases through 2009. NAR also strongly supports eliminating the repayment requirement on the first-time home buyer tax credit. “This is critical to stimulating home sales and shrinking the housing inventory, which will in turn help stabilize home values,” McMillan said.
The $7,500 tax credit that was passed last year is encouraging some first-time home buyers to become homeowners before the credit expires on July 1; NAR estimates that it will create 66,000 additional sales.
But more can be done, and NAR is working with Congress and the new administration to help buyers, sellers and investors in today’s market.
Currently, the program requires qualified buyers to repay the credit, without interest, over 15 years, essentially giving these buyers an interest-free loan. Eliminating the repayment feature could encourage an additional 202,000 home sales. And if the tax credit were extended to all home buyers without a repayment feature, it could result in an additional 555,000 home sales.
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