Housing Bill Creates Great Environment for First-time Buyers, Says Richard Newquist, Real Estate Analyst in NE Florida.
The signing of the Housing and Economic Recovery Act of 2008 by President Bush has opened the door to first homebuyers and previous homeowners who haven't owned for the past three years.
New benefits such as a repayable first-time home-buyer tax credit. First-time buyers are important to the health of the housing economy because their home purchases help to stimulate sales up the price points. Through the home-buyer tax credit, buyers who are purchasing for the first time or who haven’t owned a property in the last three years can now qualify for a tax credit equal to 10% of their home purchase price, up to $7,500.
The timeframe to buy is between April 9, 2008 and July 1, 2009. The credit phases out if the buyer’s income exceeds $75,000 for an individual or $150,000 for a couple filing jointly and it must be paid back over a 15 year period in equal installments. The credit can be claimed on the buyer’s 2008 tax return even if the purchase is made in 2009 (it’s important to note that this is a tax credit and not a tax deduction).
Another component of the housing bill is an FHA overhaul which allows Fannie Mae and Freddie Mac to serve more home-buyers by raising loan limits in high cost areas above the standard conforming limit to 115 percent of the median house prices and up to 150 percent of the conforming loan limit.
"This Housing and Economic Recovery Act marks the beginning phase of the next ten-year housing cycle in which prices in the more affordable markets will only continue to appreciate", said Richard Newquist, long time real estate analyst now practicing in Jacksonville Florida.
Home loan proceedures have been reevaluated and some tightening has taken place especially in the area of down payment assistance by sellers which has now been ruled out as a source of funds.
1 comment:
The real estate market in Winnipeg continues to boom and this is great news for homeowners looking to sell their home. However, with the vast array of houses on the market this means that your home needs to stand head and shoulders above the rest in your neighborhood that are on the market. You can get still more information about home buyers which I browsed on internet can fetch you help.
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