According to Realtor Daily Magazine News, the new and expanded $8,000 home buyer tax credit extension is expected to generate $22 billion to the economy. The credit was extended to April 30, 2010. The expanded bill includes $6,500 tax credit to current home owners who have lived in their homes five of the past eight years
Income limits were increased to $125,000 for single buyers and $225,000 for couples, up from previous limits. Home prices that qualify are capped at $800,000. Sen. Johnny Isakson of Georgia, a former member of the National Association of Realtors (NAR), was considered key in pushing through the initial legislation. The legislation was also boosted by the National Association of Mortgage Bankers Association. NAR estimates 2 million people will take advantage to the tax credit in this year.
Sources for Realtor Daily included The Associated Press and NAR.
Showing posts with label mortgage capital improvement. Show all posts
Showing posts with label mortgage capital improvement. Show all posts
Wednesday, November 11, 2009
Saturday, August 23, 2008
Housing Recovery on the Way with Housing Stimulus Bill
According to Lawrence Yun, Chief Economist at NAR Research, a housing recovery is on the way. The recently passed housing stimulus bills should help stabilize the housing market. The American dream of home ownership is more attainable to first time home buyers. More families may be able to refinance into safer and more affordable mortgages, avoiding the devastation of home foreclosure.
One exciting provision of the recently enacted law is the home buyer tax credit. Up to $7,500 will be available to first-time home purchasers as they file their income tax returns. The amount is phased based on income level and is to be no more than ten percent of the purchase price. Yun stated the amount is equivalent to cash on tax returns. The credit will not be available after July 2, 2009. One should take advantage of the tax credit opportunity during this window of opportunity. Although the bill is still being analyzed by NAR, this is technically not a full credit. There are some payback provisions. However, money loses value over time, so this can still be a big boon. Historically, money is worth more now than it will be in the future. One could, for example, pay off a high interest credit card. With greater home buying and selling activity, credit markets should strengthen and mortgage capital flow more freely. Yun estimates nearly 3 million home buyers will take advantage of this tax credit opportunity before the bill expires in 2009. Will you be one of them?
One exciting provision of the recently enacted law is the home buyer tax credit. Up to $7,500 will be available to first-time home purchasers as they file their income tax returns. The amount is phased based on income level and is to be no more than ten percent of the purchase price. Yun stated the amount is equivalent to cash on tax returns. The credit will not be available after July 2, 2009. One should take advantage of the tax credit opportunity during this window of opportunity. Although the bill is still being analyzed by NAR, this is technically not a full credit. There are some payback provisions. However, money loses value over time, so this can still be a big boon. Historically, money is worth more now than it will be in the future. One could, for example, pay off a high interest credit card. With greater home buying and selling activity, credit markets should strengthen and mortgage capital flow more freely. Yun estimates nearly 3 million home buyers will take advantage of this tax credit opportunity before the bill expires in 2009. Will you be one of them?
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