Housing and Recovery Act of 2008

By
Real Estate Agent with Fickling & Company

 

Housing and Recovery Act of 2008
   Warner Robins Real Estate with John Cobb at  Coldwell Banker SSK Realtors

John Cobb Realtor®
470 S. Houston Lake Rd
Warner Robins, GA 31088
(478) 396-2440

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The Housing and Recovery Act was signed into law on 30 July 2008. I wanted to send out a few highlights of the benefits and timelines to my customers.

First-time homeowner tax credit: If you have not owned a home within 3 years and earn less than $75,000 then you can qualify for up to $7,500 tax credit. Dates for qualifying include homes closed between April 8, 2008 and June 30, 2009. This is a interest free loan that must be paid back within 15 years. Here is a link with more details.

 Property tax deduction for all homeowners: Homeowners who pay property taxes, it increases the standard deduction by $500 for single filers and $1,000 for couples filing jointly.

FHA loan limit: There are maximum amounts for loans that the FHA will insure, and that Fannie Mae and Freddie Mac will guarantee. Those limits were raised temporarily this year. The new law raises limits permanently. FHA limit for the Warner Robins area is $271,050.

FHA miminum downpayment: FHA minimum required downpayment was increased from 3% of purchase price to 3.5%, but this requirement does not go into effect on homes closed before October 1st.

Downpayment assistance: Downpayment assistance for FHA loans will no longer be available on homes that close after October 1st. Family members and non-profit organizations are currenly allowed to contribute to homebuyers 3% downpayment requirement.

Homes facing foreclosure: Many people who have adjustable rate mortgages are having trouble making payments. Also, some people's homes have lost value, making the home worth less than what they currently owe. It encourages lenders to forgive some of their debt so they can refinance at lower amounts into mortgages insured by the Federal Housing Administration, or FHA - making their payments more affordable.

 
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There are definitely some benefits for all homeowners in the new tax bill. A interest free loan that can be paid back over 15 years can definitely benefit a lot of people. Tax deductions of $500 is also a good thing for people who don't itemize. Unfortunately homebuyers planning on using FHA will have to come up with more out of pocket expenses after October 1st. Right now the easiest way to buy a home is with VA financing, but people who can't qualify for a VA loan (0% down) typically use FHA because it requires only 3% down with avenues for downpayment assistance. After October 1st downpayment assistance will be gone and the downpayment increases to minimum of 3.5%. If you are a veteran and can qualify for VA then there is no alarm, but homebuyers who are not veterans, but are looking to buy a home this year may want to purchase their home before October 1st due to the new tax bill.

 

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Rainer
105,273
Travis Newton
Salem and Bend Oregon FHA, VA & USDA 503.931.4490 - Salem, OR
FHA, USDA, VA, LOAN EXPERT - Salem OR Homes For Heroes SALEM OREGON

tons of great info there, thanks for posting that.

Aug 02, 2008 02:30 PM #1
Rainer
24,718
Veronica DeCarolis
Weidel Realtors - Flemington, NJ

Thanks for the good summary.  Veronica

Aug 02, 2008 02:31 PM #2
Rainmaker
58,281
Gabriel Duque
Virtual Florida Tours - Miami, FL

excellent abstract continue the good work

Gabriel

Aug 11, 2008 10:29 AM #3
Rainer
7,740
Ron Sosa
REaction Realty Executives - Redlands, CA
MBA

Great FAQ on the tax credit! I was looking for something like this.

Sep 01, 2008 10:29 PM #4
Rainmaker
68,683
John Cobb, REALTOR - Warner Robins Georgia Homes for Sale
Fickling & Company - Warner Robins, GA
Subdivisions, Foreclosures, Real Estate, New Homes

You're Welcome,

I read up on the subject over a couple days and put together some of the highlights trying to keep it as factual as possible with links so everyone can read more if they wish.

John Cobb

http://www.johncobbmiddlega.com

Sep 02, 2008 08:00 AM #5
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Rainmaker
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John Cobb, REALTOR - Warner Robins Georgia Homes for Sale

Subdivisions, Foreclosures, Real Estate, New Homes
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