The Congress approved Stimulus Bill goes to the President tomorrow for signature. A small part of this bill will support the housing recovery in two part. First, the bill increases the first-time homebuyer tax credit to $8,000 on primary residence and eliminates the repayment requirement of earlier legislation. In addition, the credit availability has been extended until Dec. 1, 2009. Keep in mind the definition of a first-time home buyer is an individual who has not owned a home in the last three years. The credit will be claimed on a tax return to reduce the purchaser’s income tax liability. If any credit amount remains unused, then the unused amount will be refunded as a check to the purchaser.
The second item in the bill reinstates last year’s 2008 loan limits for FHA, Freddie Mac, and Fannie Mae loans. These limits were equal to the greater of 125% of the 2008 local area median home price or $271,050 for FHA and $417,000 for Fannie and Freddie, with an overall maximum cap of $729,750. For the few areas where the 2009 limits were higher, the higher limits will apply. In addition, the bill includes language providing the HUD Secretary with the discretion, if warranted, to increase the loan limit for any “sub-area”, i.e.an area smaller than a county. The Secretary’s discretion is again limited by the $729,750 cap. These 2009 limits will expire December 31, 2009.
Although these items of the bill may not directly influence the purchase of a condo on Singer Island; it will stimulate the overall housing market which will reduce inventories, increase buyer confidence and indirectly benefit the second home market.
For more information on specific condominium sales activity contact Jeannie at 561-889-6734 or email her at [email protected]