Economic Stimulus Package

Its been all over the news. By now, Im sure you heard something about it.  The original push, specifically for Real Estate, was for a First Time Homebuyer to receive a tax credit of $15,000.  That amount has been reduced to $8,000.

The House and Senate have reviewed the plans and made some minor enhancements to the original proposed plan.  Below is a quick snap shot of the current plan, as it pertains to Real Estate.  Does the below mean “Go out and buy a home”, not necessarily, but it certainly doesn’t hurt.

Our current Stimilus Plan approved by the Bush Administration includes the following:

  • Tax Credit up to 10% of your purchase price, not to exceed $7500
  • Available for purchases between April 9, 2008 and June 30, 2009
  • Can not have owned property within the last 3 years
  • Must be your primary residence
  • Income restrictions ($75,000 per individual)
  • Can be applied towards your 2008 or 2009 taxes
  • Must be paid back starting in 2010 @ $500 each installment, not to exceed 15 years
  • No Interest or Penalties charged for this $7,500 during the payback period

As I stated, the original proposed package was for a tax credit up to 10%, not to exceed $15,000.  As of now, that has been revised to $8,000.  Based on what I have read, here are the guidelines for the new package as it relates to Real Estate.  I have bolded the items that are clearly different from the original:

  • Tax Credit up to 10% of the purchase price, not to exceed $8,000
  • Available for purchases between January 1, 2009 and December 1, 2009
  • Can not have owned property within the last 3 years
  • Must be your primary residence
  • Income restrictions – Individual income not to exceed $75,000 (or $150,000 per couple)
  • No Payback, if you own the home for at least 3 years.  If sold before 3 years, you will need to pay this money back (details to follow when final approval is received).

The new package has a bigger potential for stirring up business in Real Estate because this would be no longer considered a ‘loan’ from the government.  The $8,000 would be a credit not to be paid back as long as you keep your home for at least 3 years.  Sure, the $15,000 would have been nice but the revised proposal still sparks the interest if First Time Homebuyers.

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Other helpful reads may include:

Open House Strategies

Call Conversations

Credit Repair Suggestions

Realtor Marketing

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Always available for your Frisco Texas Mortgage needs!

John Cannata  Reliant Mortgage  p# 214.545.5604  

www.TxMortgageConsultant.com

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