Federal Housing Stimulus Package -What Does It Mean To You?
by Kurt Schimnich, CMBA President
Congress is working on a stimulus package designed to help first-time home buyers, struggling home owners, that will jump-start the housing market, save jobs and restore consumer confidence.
A first-time home buyer temporary tax credit will reduce taxable income from the first year after buying a home and will help provide a bigger refund or a lower tax bill. Tax credits differ from tax deductions – tax credits are deducted AFTER the total tax is calculated.
Current provisions – subject to final signing of the bill by President Bush – include:
$7,500 tax credit for the purchase of any home used as a principal residence and closed on or between April 9, 2008 and April 1, 2009 for those who earn less than $70,000 annually, after which it phases out at $140,000 for married couples.
With this incentive, many home buyers who have been undecided on the purchase of a home will now buy. Homes sitting on the market will sell, home sellers will buy new homes, demand will increase, and home prices will stabilize. Stable home prices allow existing home owners to refinance if needed, or to sell their home without taking a loss on their biggest investment.
Another portion of the housing stimulus package would modernize the FHA. The Federal Housing Administration (FHA), an agency of the federal government, helps borrowers with less-than-ideal credit ratings or limited down payment cash to get affordable mortgages. Additionally, it includes a new FHA foreclosure prevention program to provide new loan guarantees to help as many as 400,000 at-risk borrowers stay in their homes.
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3 Responses to “Federal Housing Stimulus Package -What Does It Mean To You?”
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i financed my home in 2006 fha. i borrowed the $8000.00. i called suntrust mortgage to try and get help under the new plan. there is to many stipulations for a person who tries to pay there bill. i had my house appraised and because it appraised less than when i bought it the bank could not help me but i paid $400.00 for an appraisal. my house note $1300.00. my interest rate 6.50. why can’t i get lower interest rate no refinancing no credit check and no appraisal.
I am interesting in becoming a home owner. I have rented all my adult life since 1987. I feel it’s time for me to have my own home. Please send me more information on how I can get started. I understand that the stimulus offer has been extended beyond April 2009. I am tired of paying close to $500.00 every month in rent. This could be just what I have been waiting for.
Go to http://www.federalhousingtaxcredit.com/ for more information.